What goes up must come down…right?
Written by Mike on April 30, 2008 – 7:34 pm -Most people have been affected by the price crunch at the pump. However, inflation is rearing its ugly head in other areas as well. The price of milk is up 13% from last year and hospital costs are up 8%. Now while we’re no where near the 1970’s, inflation often ranks as the number one financial concern among people today.
Keeping this in mind, there are a couple of changes one should consider when making financial decisions today. First, Fixed-rate debt is more desireable. With inflation on the horizon, its best to stay away from variable-rate loans. Second, when moving into an era of inflation, tangible goods tend to fair much better than paper assets. Consider allocating a larger part of your portfolio to items such as precious metals, oil or gems. Lastly, don’t lock yourself into long-term savings vechiles. Longer term CD’s and bonds don’t tend to keep pace with inflation and you can actual lose money while attempting to save money.
Tags: Inflation
Posted in Inflation |
April 30th, 2008 at 7:34 pm
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