You Can’t Stop Inflation, But You Can Prepare

You Can’t Stop Inflation, But You Can Prepare EGSI Financial

Did you ever hear your parents or grandparents talk about how much less everything used to cost? They weren’t exaggerating – in 1960, a gallon of conventional whole milk was 31 cents, and today it’s $3.77 on average.[1] A few dollars might not seem like much, but that’s a 1,116% increase. You’ve likely noticed higher prices recently, even if they aren’t 1,116% higher. Unfortunately, you can’t stop inflation. But, you can prepare by working to protect your money from inflation.

How Much is Inflation Costing You?

In March alone, U.S. gas prices rose by more than 18%. Year-over-year, the price of gas soared by 48%. Energy costs increased 32% over the last year, while food prices rose by 8.8%. It was the biggest increase in food prices since 1981.[2] You’re likely wondering how you can work to protect your money from inflation. Cutting back on spending isn’t always an option – you still need to get where you’re going in your car and buy food. The Federal Reserve is raising interest rates in an effort to curb inflation, but no one knows when it will work. In a time of rising interest rates and high inflation, know how you will respond.

Prepare for Inflation

While there is no single “magic bullet” cure for inflation, there are many strategies available. One potential strategy is buying Series I Savings Bonds. These are bonds issued by the U.S. government that are adjusted for inflation. Other options include creating an investment strategy with a mix of stocks and bonds based on your risk tolerance and need for growth. There are also fixed income options that can help mitigate market loss and potentially provide income in retirement.

A Multi-Strategy Approach to Inflation

There are many investment options available if you are looking to help protect your money from inflation. Not every strategy will be right for you, and it’s hard to know which ones will be. We can look at your unique financial situation and help you consider strategies that fit your needs. Our full-time job is helping people protect and grow their money. Sign up for a time to come speak to us about your financial concerns so that we can get started on a plan.

 

[1] https://www.ams.usda.gov/sites/default/files/media/RetailMilkPrices.pdf
[2] https://www.cnn.com/2022/04/12/economy/consumer-price-inflation-march/index.html


Advisory services offered through EGSI Investment Management, Inc., a Registered Investment Advisor with the State of Ohio. Insurance services offered through EGSI Financial, Inc. Guarantees offered with insurance products are based on the claims paying ability of the issuing company. Investing may involve risk and may result in the loss of principal. Ohio Insurance License # 619337. Please contact EGSI Investment Management if there are any changes in your financial situation or investment objectives, or if you wish to impose, add, or modify any reasonable restrictions to the management of your account, EGSI Investment Management Form ADV Part 2A&B is available for your review upon request.

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