How To Minimize the Damage From A 9.8% Inflation Rate

Over the last 12 months the USA inflation rate is up 9.8%. Investing at a bank with an average yield of 1-4% means that before taxes you have a net negative return of 5.8-8.8%. Your buying power has actually decreased by that 5.8-8.8%. To make it worse you are getting taxed on the rate paid by the bank at a 15-33% rate even if you leave the money in the bank account. OUCH!! To asses the damage start with your earning rate subtract the tax rate you pay, then subtract the 9.8% inflation rate. This year that number looks like it will be a negative number for almost everyone. Minimize the damage! Protect your principal! Some years just staying even is a great place to be. Its better than a 20-30% market loss! Efficient money management is even more important in a bad year than it is in a good year. The impact on most people from 2001-2002 took 5-6 years to recover.

Let's repeat it again. Protect your Principal! Balance your assets with at least some no risk financial products. We can even create a lifetime income source that is not subject to market risk.

There has to be a better way! There is a better way! As long as the inflation rate stay this high there is no safe way to beat inflation and remain risk free. You owe it to yourself to get the best rate of return you can and maintain the highest degree of safety that you can in the process.

A 7.2% guaranteed rate of increase in an Income Account value with the potential of a higher rate of return depending on economic conditions seems to be about the best combination of risk-reward ratio I have seen in the last year. Hopefully the gas prices and commodity prices will continue to ease a little bit and the inflation rate for the next 12 months will be more moderate. Perhaps we will get back to a 2-3% increase in the Consumer Price Index (CPI). At that level you can actually grow your assets but until then most people will do well just to minimize the damage to their assets.

Contact us to arrange a no fee initial consultation. We can help you protect yourself in the bad years and take advantage of the good years all with little to no risk. If this is a philosophy that appeals to you we should certainly talk. Business owners and individuals can all benefit from these strategies. We can structure safer money planning into your retirement plans.

We can not help everyone, but how can we help you?

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