Wiser Wealth: Four Ideas to Protect Your Cash From Inflation

We have seen a lot of dramatic financial shifts since the pandemic started, including the highest increase in inflation in over three decades just back in October. That is why the founder of the largest hedge fund in the world, Ray Dalio of Bridgewater Associates, is saying that leaving your cash just sitting around is still going to lose you money.

Writer Jing Pan touched on this in an article for Yahoo Finance, explaining some investments you could make to keep your cash in something that is increasing in value.

Bitcoin

Cryptocurrencies initially started off by being seen as an odd fad that probably would not be around in a few years. However, the value of currencies like Bitcoin have skyrocketed exponentially year over year.

It is true that this currency’s worth can fluctuate pretty rapidly which may deter some. But many who did not invest years ago are kicking themselves looking at Bitcoin now.

Art

If you like the advantage of being able to see and hold your physical assets, putting your cash into an art collection could be a happy medium for you.

Fine art is a steady and reliable investment that has actually even seen a boom during the pandemic. Art can bring a lot more value to your home than just aesthetic enjoyment.

Gold

Though we are far removed from the days of the old-time prospectors, gold is still a coveted commodity. With it being a limited resource in the world, unlike cash, it helps protect the value of gold and keep it high. That keeps gold largely safe from the negative impact of catastrophic economic events.

“In addition to the above,” states Fred Hubler, Chief Wealth Strategist for Creative Capital Wealth Management, “we also utilize institutional defensive accounts. These are daily liquid portfolios managed by institutional managers who have two primary charters; 1) protecting principle 2) earning maximum after-tax income.”

It is fine to be leery about putting all of your eggs in one basket. There are legitimate reasons to have reservations about putting too much into stocks and savings. However, that does not mean that there are not other viable options out there worth considering besides holding onto a big pile of cash.

To learn more about how you can protect your cash savings, read the article from Yahoo Finance by clicking here.

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Fred Hubler Headshot

Want to know if you’re on the right path financially? Fred Hubler’s Second Opinion Service (SOS) is a no-obligation review with Creative Capital Wealth Management Group‘s Chief Wealth Strategist.

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.

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