Inflation Reaches Highest Level in 40 Years
The struggle to keep up with rising living costs is real — especially with the near-historic inflation rates we see today. Now more than ever, it’s important to have a plan in place to combat these soaring costs so what does the 1% do to outpace inflation — and keep growing their wealth? Here are four strategies inspired by the ultra-wealthy you could use for your money. And you don’t need millions of dollars to start.
According to Bureau of Labor Statistics, the Inflation for the prior 12 months equaled 7.5%, the largest increase in 40 years, and follows a 7.0% rise for 2021. It diminished slightly between January and December, but not enough to prevent inflation from reaching a 40 year high for the prior 12 months. Price increases were broad-based, suggesting that the problem is longer-term than initially anticipated and heightening expectations that the Federal Reserve will increase interest rates in their March meeting.
Table: Comparing Change in wages to price changes of common purchases.
| January 2022 | Prior 12 Months | |
| Wages | 0.7% | 5.7% |
| Gasoline | -0.8% | 40% |
| Electricity | 4.2% | 10.7% |
| Rent | 0.5% | 3.8% |
| Meat | 0.3% | 12.2% |
| Food At Home | 1.0% | 7.4% |
Let’s take a look at four strategies the 1% use to deal with real inflation.
- Invest in art that has outperformed the S&P by over 180%
History has shown art to be one of the top investments of all time. In fact, in the last two decades art has outperformed the S&P by over 180% between 2000-2018.
But while the ultra-wealthy rake in huge profits, everyday folks have been left out in the cold. Masterworks is an exclusive platform that lets investors of all types add art to their portfolios in just a few clicks.
They let you buy individual shares of famous works by artists like Warhol, Banksy, and Basquiat, similar to stock in a company. Get paid when the painting sells, or trade your shares to other members on their secondary market.
While Masterworks requires a $5,000 account minimum to get started, you can build a well-rounded portfolio of masterpieces with the help of their art experts.
- Earn Passive Income by Investing in Real Estate
Imagine getting a check in the mail monthly or quarterly by making your money work for you. This is the experience of all clients of Prosper2000 Investment Firm.
With Prosper2000 and many other legitimate Investment firms out there, it can start earning you passive income through monthly or quarterly distributions. You’ll get to invest in some of the hottest and most lucrative real estate investment deals without the headaches that come with being a landlord.
Be aware, all investments do come with certain degree of risk that is in all cases well calculated and well managed.
- Prepare for market volatility by diversifying in gold
Stock market volatility can be financially damaging, especially as you near retirement. You could move your investments into a savings account, but have you seen interest rates lately? Another option to consider — diversify with gold.
Gold values are inversely correlated with the stock market and the dollar. When one goes down, the other usually goes up. If you want to protect your retirement funds, having diversified investments may be able to help you weather market swings.
Gold Alliance is a reputable precious metals dealer that specializes in precious metals IRAs. They make it simple to transfer funds from your current retirement account (like a 401(k) or IRA) into a precious metal IRA — with no taxes or penalties.
Gold Alliance offers a free gold information kit to help you learn more about why gold and silver could be a smart choice for diversifying your portfolio, and how the process works.
- Tap into your home’s value without taking out a loan
If you own your home, you know it’s a valuable asset, but tapping into your home’s value without selling it can be a challenge. If you need money for home improvements, to pay off debt, start a new business, fund your retirement, pay for education, or more, there’s a new option to consider.
Hometap is an alternative to traditional home equity loans. Instead of loaning you money that you need to pay back in monthly payments, they make an investment in your home. If qualified, they’ll give you the cash now in return for participating in the proceeds when you sell your home.
To be eligible, you need to own at least 25% equity in your home. You can request a free estimate of your home from Hometap to get started.