This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Advice: Even Mild Inflation Should Scare You

You may not think you need to worry about a little inflation, but you should.

Even a little inflation adds up over the years, and can make a real dent in your wealth if you haven't prepared with investments that will not only match, but outpace, its ravages.

Our average historical inflation rate, going back to 1913, is an innocuous looking 3.42%. But that "tolerable" rate adds up to total of more than 2,000% inflation! Or to put it another way, a dollar today is only worth 4.8 cents in 1913 dollars.

What happened to the value of our money? Inflation has eaten away at our buying power. The government took our money by stealth, in small increments, by the secret tax that inflation enacts on all our savings. The more money government "creates," the less valuable our existing money becomes.

The current inflation rate is 4.18% (on an annualized basis), based on the Consumer Price Index figures released in mid-June. That's actually below the nearly 6% inflation rate that alarmed President Nixon enough to institute disastrous wage and price controls on Aug. 15, 1971.

BankingMyWay

Inflation statistics have been kept since 1913, perhaps not coincidentally the same year the Income Tax was first enacted. So we have a reliable measure of the impact of inflation for almost the past 100 years. Those figures show that for today's -- or tomorrow's -- retirees, a small amount of inflation can mean big lifestyle changes.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $126.88 0.86%
FB $77.84 0.36%
GOOG $530.80 0.00%
TSLA $234.45 0.64%
YHOO $41.35 0.12%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs