Wiser Wealth: 5 Ways to Deal With and Maybe Even Benefit From Rising Inflation

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Calculator Inflation
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Everywhere you go now you will see prices significantly higher than they were a year ago. Inflation is normal, but recent months have been particularly brutal for price increases. If you are looking for ways to feel relief, you are not alone. The Wall Street Journal recently shared some of the best practical steps you can take to remain financially secure.

Buy inflation-indexed stocks

Focus your stock purchases on companies that are tied to something tangible. For instance, stores raise their prices based on factors such as how much rent they are paying for the location. This helps make investments in these types of stocks more predictable in terms of what you will see in terms of inflation.

Invest in alternative energy

It has been commonly known that oil is an investment with a limited future, and the rising gas prices sparked by the war in Ukraine made that even more apparent. That is why now more than ever we have seen the value in focusing on alternative energy sources instead.

Ask for a raise

This is one of the most straightforward answers for dealing with inflation. Prepare an argument to your boss of how much you do, and how much similar companies are paying to hire people in your field now if it is higher than your salary.

Delay Social Security

Once you start collecting social security, you will receive it at whatever the rate is at that time. But for each year you delay collecting social security past the standard retirement age, your benefits see an 8% increase. So if you can afford to, postponing social security could earn you more.

Control your lifestyle creep

If all else fails, look at where you are losing the most money. Look at what you are doing that now costs the most that you can do without.

Fred Hubler, Chief Wealth Strategist for Creative Capital Wealth Management Group which offers retainer-based advice and access to accredited investments has been recommending, that clients “lessen exposure to the stock and bond market for a while.”

We feel that hard cash flowing assets, Hubler continued, “are an inflation hedge.”

Things like institutional real estate (properties worth more than $10M) tend to do well in choppy environments if the tenant and property are of good quality. Of course, clients don’t buy the entire $10M property but a much smaller sliver.”

I Bonds, according to Hubler, are also a good hedge (but capped at $10K per person).

“Sadly,” Hubler laments, “the next couple of years will probably be a bumpy ride no matter what you do.”

Regardless of whether current inflation rates are a fleeting trend or not, you need a plan to ride out whatever the surge may bring.

For the full list of all 15 steps you can take to combat inflation, read The Wall Street Journal’s other ideas here.

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Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of  Creative Capital Wealth Management Group‘s Wealth Strategists. 

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.

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