The government recently confirmed inflation hit a 40-year high of 7.5 percent in January. Naturally, people get concerned about how to invest in times of high inflation. Certified financial planners offer strategies on how to invest where you can and how to cut costs.
Individual investors should look for value stocks that represent consumer staples like food and energy, which people still will be buying.
The government offers Treasury Inflation-Protected Securities called TIPS. These are government bonds whose principal increases with inflation. Other investments to consider include real estate and commodities, both of which increase in value during inflationary times.
Financial pros also recommend that you don’t keep excess cash on hand because there are investments that could perform well while the purchasing power of your cash declines. By the same token, they also say it’s wise to not neglect your savings. It’s recommended to have 3-to-6 months of projected expenses in savings as a hedge.
In addition, inflation makes it more critical to keep an eye on your budget and have a spending plan that eliminates non-essentials.
Council of Seniors Wants Your Dollar to Go Farther
A boost in income can offset inflation. That’s why here at Council of Seniors, we believe Congress must pass The SAVE Benefits Act. This bill is necessary because the Social Security cost of living adjustment (COLA) hasn’t kept up with inflation over a series of years. If the bill passes, seniors will be reimbursed the missing $581.
Sign our petition right now to get on board with this effort. Together, we’ll show Washington politicians the growing number of Americans who support this bill.
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