How can I not only survive but how can I thrive in the coming economic cycle?
Roughly half of Americans have never experienced inflation. They were too young or not yet born in the late 70s and early 80’s to have lived in it. It’s a tough economic cycle that requires some tough policy decisions.
Decades of monetary policy (“accommodative” ) low-interest rates and deficit spending have gotten us here. The latest oil price shock, supply chain, and Covid relief have pushed the economy over the edge.
The question now is how is this stopped without tumbling into a prolonged recession? So we have a double-edged sword, how do we stop or slow inflation without killing the economy?
The wage-price spiral describes a perpetual cycle whereby rising wages create rising prices and vice versa. Central banks use monetary policy, the interest rate, reserve requirements, or open market operations, to curb the wage-price spiral. Inflation targeting is a type of monetary policy that aims to achieve and sustain a set interest rate over a period.
So the BIG question is how do I protect myself, my nest egg and not only survive but can I thrive in this scenario?
The answer is yes you can with a combination of financial tools. You will need tools that protect your downside and give you upside at the same time.
Many of these tools did not exist until relatively recently. Some of these tools are equity-based and some are insurance-based. The mix should be tailored to each person’s needs.
A solid financial plan built by a competent planner will show you the path to prosperity during rough waters. However, you must be proactive and prepared!
Click here to learn more