Inflation Is Going Up: Secure Your Retirement
It’s all over the news: Inflation is on the rise and, while it isn’t always a bad thing, it can sometimes lead to some severe consequences for the average American. According to CNN, prices have climbed 6.2% in the United States — the most significant increase since November 1990, and well above the Federal Reserve’s long-term inflation goal of around 2%. Keep reading to learn more about inflation, why it is going up, and how you can take steps to protect yourself and secure your retirement savings today.
What is Inflation?
Inflation is expected as the value of the dollar decreases through more and more money being printed (and other reasons). Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the reduction in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time. The rise in the general level of prices often expressed as a percentage means that a unit of currency effectively buys less than it did in prior periods.
There are a few key takeaways to know about inflation, also according to Investopedia.
- Inflation is the rate at which the value of a currency is falling and, consequently, the general level of prices for goods and services is rising.
- Inflation is sometimes classified into three types: Demand-Pull inflation, Cost-Push inflation, and Built-In inflation.
- The most commonly used inflation indexes are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).
- Inflation can be viewed positively or negatively depending on the individual viewpoint and rate of change.
- Those with tangible assets, like property or stocked commodities, may like to see some inflation as that raises the value of their assets.
Why is Inflation Going Up?
Inflation has taken a sharp increase due to the 2020 Coronavirus pandemic. As factories shut down and most places of business closed, the economy was shut off. Once Americans had money back in their pockets thanks to unemployment benefits and other COVID-19 related benefits, the demand for goods went back up. However, the supply chain couldn’t keep up, causing shortages of goods and, therefore, prices to rise.
The key to slowing down the inflation rate is to clear up the bottleneck in the supply chain. However, in these uncertain times, that isn’t as easy as it sounds. The Delta variant of the Coronavirus set everything back again, and there is no telling if there might be another variant surge. In addition, policymakers will look to increase interest rates and remove pandemic benefits to slow the inflation rate. This is easier said than done as well because the thought of spending more money while cutting benefits doesn’t sit well with most Americans.
How to Secure Retirement and Hedge Against Inflation
Simply put: The value of gold goes up as the value of the dollar goes down. When inflation happens, the value of the dollar decreases, which makes the value of your gold investment go up.
When inflation happens, the cash you have saved has lost some of its value. In order to protect this, you can invest some of it into gold. What you lose in value through inflation you can gain back by hedging with gold.
Gold Roth IRA
The best way to save for retirement while also hedging against inflation is by taking part in a Gold Roth IRA. By rolling over your IRA, 401(k), 403, TSP, or 457 Plan into our Precious Metal IRA Account, you can achieve the same profits you would gain by purchasing gold or silver directly while also enjoying the benefits that your retirement account provides.
We have a proven four-step process that makes opening a precious metals IRA easy, and we guarantee you the highest caliber customer service. Our IRA specialists will answer all of your questions, work with your current custodians to ensure a seamless transition, provide you with a free metal evaluation, and continually help you to review your portfolio.
- Step #1 – Gather Account Holder Information
- Step #2 – Decide on Beneficiary Designation
- Step #3 – Source of Funds
- Step #4 – Transfer Instructions
About Priority Gold
These are uncertain times, and the value of the American dollar is steadily decreasing. This is making the value of gold go up — make sure you get in now. If you are ready to invest in gold to protect your savings and secure your future, we can help.
Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink. We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers.
Our team is committed to helping streamline their precious metals purchases at a fair price, selecting the proper precious metals portfolios, and meeting their essential financial objectives. We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. Priority Gold guarantees the highest customer service standards, which come with honesty, professional conduct, and the Ethical Code of Business.
For more information, visit us at prioritygold.com