How to Hedge Against Inflation

The Consumer Price Index or CPI measures a basket of goods as well as energy and housing costs to gauge buying power. The CPI is reported on May 12, 2021, rose by 4.2% as compared to a year ago. That’s the fastest rate of change since 2008. Your dollar isn’t going as far as it used to. That fill-up at the pump costs nearly 50% more than it did a year ago.

Here are 5 suggestions the market pundits recommend in a rising price environment and there’s, of course, a problem for every solution:

1. Buy Gold…But Bitcoin is making a bid to be the “New Gold.”
2. Buy Commodities…Right now, that’s a “Buy High, Sell Low” proposition.
3. Value Stocks…Whatever those are.
4. Treasury Inflation-Protected Securities (TIPS)…Already trading at a premium.
5. Buy a house with a low 30-year fixed-rate mortgage…You’ll overpay if you can even find one.

If the Fed has to intervene to keep inflation in check, stay home in your overpriced house because all other bets are off.

Senior Life Settlements are a mid-to-long-term option to protect principal and make attractive risk-adjusted returns that will protect your buying power against the threats of inflation and rising interest rates well into the future.