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If your nest egg is cash, it may be eroded by uncontrollable inflation. If your nest egg is in assets, it may be eroded by imploding asset markets. How do you k
by shrimpx 4y ago
If your nest egg is cash, it may be eroded by uncontrollable inflation. If your nest egg is in assets, it may be eroded by imploding asset markets. How do you keep your nest egg healthy?
- Rury 4y agoInflation is a lagging metric. Inflation of 8%, means prices today are 8% higher than compared to a previous time. Holding onto cash when inflation is at 8% would be the good option, provided prices drop in the future (ie you're not losing 8% on holding your cash currently when inflation reads 8%, rather it's cash compared to last year which has lost 8% if you spend it now). As to whether we'll get inflation or deflation in the future, look to the Fed, they are the biggest market participant. Future is what matters, not the past.
- s1artibartfast 4y agoOne option is to put your nest egg in a durable asset that you cherish, enjoy, and get daily use from.
- AnimalMuppet 4y ago"Divide your fortune into seven, or even into eight, for many are the mischances of the world" - the Bible (Ecclesiastes, if I recall correctly). In other words, diversify. Hope that the areas that grow make up for the areas that implode, or at least that they don't all implode.
- honkycat 4y ago> Though if the US dies it is not gonna save me either way. yeah this is what i meant by this comment.