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Prices Keep Rising - Make Sure Your Money Rises With Them
You wake up everyday, check your bank account on your phone, and you see all your money sitting there, just as it was the day before. How do you feel? Pretty good, right? That number hasn't moved. It's exactly where you left it. Safe.
Here's the problem: that money is slowly disappearing even though you can't tell by looking at your bank app. This is because every single day, the purchasing power of that money is quietly shrinking. The things you will actually buy one day with those dollars — groceries, gas, insurance, healthcare — are getting more expensive. But your balance stays the same, so it feels fine. However, it's not fine.
That is inflation. And most people will go their entire lives without sitting down and doing the math on what it actually does to their money over 20 or 30 years and take it seriously because we're too busy watching Netflix and wasting time wondering how our neighbor could afford that nice new car.
In this episode, we're explaining the two best — and in my opinion, the most effortless — ways to fight back against inflation to make sure that your money keeps up with rising prices, because let's be honest, they're never going to start trending backwards.
More specifically, I discuss:
- Why is inflation for so important and how can it damage a retirees' financial life?
- What is the rate of inflation?
- Different types of inflation
- How does inflation affect retirement accounts? What about cash in the bank?
- Effortless inflation hedge #1: fixed-rate debt + home ownership
- Effortless inflation hedge #2: the primarily equity investment portfolio
Resources From The Episode:
- Retired-ish Newsletter Sign-Up
- Get Show Notes Here
Key moments:
(03:26) Understanding Inflation's Impact
(07:09) The Illusion of Cash Safety
(09:42) Fixed-Rate Debt as an Inflation Hedge
(14:48) Addressing Homeownership Objections
(20:28) Equity Portfolio: The Best Hedge
(23:08) The Power of Compounding Equities
(25:16) Equity Liquidity and Flexibility
(29:20) Long-Term Investing Discipline
(33:37) Combining Strategies for Resilience
(35:00) Final Takeaways
View all episodes
By Cameron ValadezYou wake up everyday, check your bank account on your phone, and you see all your money sitting there, just as it was the day before. How do you feel? Pretty good, right? That number hasn't moved. It's exactly where you left it. Safe.
Here's the problem: that money is slowly disappearing even though you can't tell by looking at your bank app. This is because every single day, the purchasing power of that money is quietly shrinking. The things you will actually buy one day with those dollars — groceries, gas, insurance, healthcare — are getting more expensive. But your balance stays the same, so it feels fine. However, it's not fine.
That is inflation. And most people will go their entire lives without sitting down and doing the math on what it actually does to their money over 20 or 30 years and take it seriously because we're too busy watching Netflix and wasting time wondering how our neighbor could afford that nice new car.
In this episode, we're explaining the two best — and in my opinion, the most effortless — ways to fight back against inflation to make sure that your money keeps up with rising prices, because let's be honest, they're never going to start trending backwards.
More specifically, I discuss:
- Why is inflation for so important and how can it damage a retirees' financial life?
- What is the rate of inflation?
- Different types of inflation
- How does inflation affect retirement accounts? What about cash in the bank?
- Effortless inflation hedge #1: fixed-rate debt + home ownership
- Effortless inflation hedge #2: the primarily equity investment portfolio
Resources From The Episode:
- Retired-ish Newsletter Sign-Up
- Get Show Notes Here
Key moments:
(03:26) Understanding Inflation's Impact
(07:09) The Illusion of Cash Safety
(09:42) Fixed-Rate Debt as an Inflation Hedge
(14:48) Addressing Homeownership Objections
(20:28) Equity Portfolio: The Best Hedge
(23:08) The Power of Compounding Equities
(25:16) Equity Liquidity and Flexibility
(29:20) Long-Term Investing Discipline
(33:37) Combining Strategies for Resilience
(35:00) Final Takeaways