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It's true that the country will be fine for a while but savers are getting decimated in the process. That $1M nestegg will feel like $250k in a few years.

brap 4y ago
If you invest in real assets, such as stocks or real estate, your savings should be more or less safe from inflation.
- klipklop 4y ago
  So far in 2022 this has not been true. Compare the 1 year of VOO to inflation. USD inflation, no idea but like +8-12% depending on what you are trying to buy? VOO -20%. Ouch. Personally this year I have had better results holding cash than investing it to hedge.
  - brap 4y ago
    There are always exceptions. Fundamentally, when both prices and wages go up, there’s no reason to expect companies to lose real value. AFAIK in 2022 we’re seeing cost-push inflation and wages haven’t really gone up, which could partially explain why companies are having difficulties producing and selling.
PaulDavisThe1st 4y ago
Inflation is headed down. It's not a completely clear picture yet, but I think this is the only reasonable conclusion from the current statistics. Things could change, but right now the arrows all point in the right direction.
- voisin 4y ago
  The pace of growth has slowed, but it is still growing in absolute terms at multi-decade highs.
  - comte7092 4y ago
    YoY inflation for the US: Jun 22: 9.1% Jul 22: 8.5% Aug 22: 8.3% Sep 22: 8.2% Oct 22: 7.7% Nov 22: 7.1% The only way I can understand your comment is if you are confusing inflation (change in price level) with price level itself. Inflation is slowing down and has been for months. [0] https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/ https://www.statista.com/statistics/273418/unadjusted-monthl...
    - objetovoador 4y ago
      So we've still got high inflation, and the fed seems like it's only got so long until it'll resume pumping money into the economy.
malandrew 4y ago
That’s why it’s better to have a mix of assets, some that can be easily liquidated, than cash. $1m in the right assets could become $4m in youre scenario with the same purchasing power of the $1m before inflation. In reality, you’ll probably lose some value though because the people holding cash that now have far less purchasing power, which torpedoes demand. Still better to be in assets than cash though.
- ashwagary 4y ago
  >$1m in the right assets could become $4m in youre scenario with the same purchasing power of the $1m before inflation. Yes, the "place bets in a rigged casino to beat inflation" strategy. A terrible idea for people over 50 that are looking for a rock solid retirement solution but when the government is robbing savers, one of the only options.

brap 4y ago

If you invest in real assets, such as stocks or real estate, your savings should be more or less safe from inflation.

klipklop 4y ago
So far in 2022 this has not been true. Compare the 1 year of VOO to inflation. USD inflation, no idea but like +8-12% depending on what you are trying to buy? VOO -20%. Ouch. Personally this year I have had better results holding cash than investing it to hedge.
- brap 4y ago
  There are always exceptions. Fundamentally, when both prices and wages go up, there’s no reason to expect companies to lose real value. AFAIK in 2022 we’re seeing cost-push inflation and wages haven’t really gone up, which could partially explain why companies are having difficulties producing and selling.

PaulDavisThe1st 4y ago

Inflation is headed down. It's not a completely clear picture yet, but I think this is the only reasonable conclusion from the current statistics. Things could change, but right now the arrows all point in the right direction.

voisin 4y ago
The pace of growth has slowed, but it is still growing in absolute terms at multi-decade highs.
- comte7092 4y ago
  YoY inflation for the US: Jun 22: 9.1% Jul 22: 8.5% Aug 22: 8.3% Sep 22: 8.2% Oct 22: 7.7% Nov 22: 7.1% The only way I can understand your comment is if you are confusing inflation (change in price level) with price level itself. Inflation is slowing down and has been for months. [0] https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/ https://www.statista.com/statistics/273418/unadjusted-monthl...
  - objetovoador 4y ago
    So we've still got high inflation, and the fed seems like it's only got so long until it'll resume pumping money into the economy.

malandrew 4y ago

That’s why it’s better to have a mix of assets, some that can be easily liquidated, than cash. $1m in the right assets could become $4m in youre scenario with the same purchasing power of the $1m before inflation. In reality, you’ll probably lose some value though because the people holding cash that now have far less purchasing power, which torpedoes demand. Still better to be in assets than cash though.

ashwagary 4y ago
>$1m in the right assets could become $4m in youre scenario with the same purchasing power of the $1m before inflation. Yes, the "place bets in a rigged casino to beat inflation" strategy. A terrible idea for people over 50 that are looking for a rock solid retirement solution but when the government is robbing savers, one of the only options.