If your low-risk money isn't earning at least 3% than you're actually going backwards and losing money.
Inflation is sneaky, but it's constant. You can beat it if you plan for it.
As inflation starts to climb you've got to be making at least 3% on your money.
If you're making less than 3% on your money, you're losing money every year.
Did you know money market funds are making less than 1%???
Knowing how to beat inflation applies to every stage of life and every level of investing.
Where is your money? Is your money working harder for you than inflation is working against you? It's easy to ignore, but absolutely a critical principal to your success.
101 Financial Principals To Successfully Reach Retirement & Live Your Dreams
Before you begin investing and moving your money to overcome inflation, you should have liquid money in an emergency fund and evaluate your risk level.
NOTE: I suggest to my clients to have 3-6 months of income in liquid money.
Now that you have money secured for when "life happens," what do you want to do with the rest of it? Great question.
If you have money just sitting in a savings account and it is not earning something more, It's time to put your money to work!
The most simple definition of retirement is the point in time where your money is working for you so well that you don't have to work any more.
Think about this. Retirement is the point in life when your money is working for you and you're not working at all.
That's the goal.
So, if your money is sitting there and not earning more, you're not progressing towards the goal.
My Retirement Advice To Win Against Inflation
If your young...
1. Build your emergency fund.
2. invest what you can into a ROTH IRA, an investment account or anything that will give you a return!
3. Watch your money begin to work for you.
If you're older...
1. Look at your portfolio returns.
2. Explore higher return options that fit you (Likely not bonds).
3. Watch your money work for you.
The sooner you can act on this, the better.
Why? Well interest rates will likely rise in March.
Interest rates are rising as inflation rises. Furthermore, Janet Yellen, the chairman of the FED, just met with congress and hinted that we may see an interest rate increase in March.
Your future is important, don't lose money through the ambiguity. Let your money work for you and let us help.