This is damn important for investors!
Why? Interest rates rise during times of high inflation, which dramatically impacts the yield on government-backed securities and top-quality bonds. It’s because of inflation—and inflation fears—that savvy investors have backed off from safe, fixed-income investments. Right now, they’re a surefire way to make sure your money does not last forever.
The Fed’s zero-interest-rate policy (ZIRP) means that if you invest in US Treasuries, you will likely lose ground to inflation. That’s good for the government and bad for investors.
The BLS website has a handy inflation calculator. Most people are told to plan for 30 years of retirement. If you retire at age 65, make sure you have enough to make it to 95—and probably much longer.
According to the BLS calculator, something that cost $10,000 in 1983 will now cost $23,389.26. That presents quite an investment challenge—considering the Federal Reserve has been printing a trillion dollars a year for the last several years. Who knows what the inflation calculator will look like 30 years from now?
The market is currently trading in anticipation of what the Federal Reserve is doing (called “sentiment”) as opposed to the true growth of the economy and success of the individual businesses (called “fundamentals”). That, coupled with a great level of distrust in our government, our currency, and the role of the Federal Reserve, affects each and every investment we make.
In the meantime, the biological clocks of baby boomers continue to tick. The headline numbers for unemployment and inflation are for the benefit of the politicians, not investors. That’s why we’re dedicated to showing investors how to safely invest in today’s market. We have no choice but to put our money into investments that are riskier than the previous generation did. Still, there are safety belts available to minimize risk.
An educated investor who reads more than the headlines, understands what is really going on, and does not invest emotionally can still enjoy retirement.
Our Bulletproof Income strategy is designed to give conservative investors the best possible returns with minimal risk. Our Bulletproof Income portfolio is designed to provide safe income—well ahead of inflation—with good diversification and safety belts to protect you and your money. If you haven’t done so, I would urge you to sign up for a no-risk subscription ($99/year). Sign up and receive a copy of my book, Retirement Reboot, all of our special reports, and our monthly issues. If you decide we’re not for you, cancel within the first 90 days and receive a full refund, no questions asked. Feel free to keep the material you’ve downloaded as our thank you for taking the time to look us over. Click here to learn more and get started today.