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  • Writer's pictureCQ

The Destructive Power of Inflation

Updated: Feb 23

I'm here to share with you my journey and expertise in building and preserving wealth. Throughout my career, I've committed  myself to helping individuals, like you, to navigate the often tricky waters of inflation and market fluctuation. These two formidable foes can significantly erode your financial stability and impede your long-term growth, but fear not—I'm here to guide you through this journey.

When it comes to inflation, it's vital to dig deeper than the average figures often thrown around. Although you might hear that the average inflation rate has been around 3% over the past two decades, this doesn't quite capture the whole picture. Take everyday essentials like groceries; they've seen price hikes far exceeding this average. That's why I stress the importance of seeking returns that not only match but exceed the average inflation rate.

Market fluctuations present another hazard. The highs can be exhilarating, sure, but the lows? They can be utterly devastating. It's crucial to look at the broader landscape and consider what you might be missing by not exploring alternative investments that offer more consistent returns, without the gut-wrenching drops.

In my approach, I've found great success in focusing on contractual wealth—think promissory notes. These instruments can provide the stability and predictable returns that are so crucial in today's economic environment. By carefully selecting reputable partners and performing thorough due diligence, you can both protect and enhance your wealth over time. My ultimate aim? To empower you to achieve financial freedom and live life entirely on your terms, keeping more of your money, making more through stable alternative investments, and enjoying more of life now.

The Destructive Power of Inflation

Let's talk about inflation: the silent destroyer of wealth. Many people think that parking their money in the bank is the  safest bet. However, this couldn't be further from the truth. In reality, leaving your money in a bank is comparable  to watching it slowly diminish in value. Imagine leaving $10,000 in the bank for a decade, only to find its purchasing power has dwindled to a mere $7,600—a loss of $2,400!

Although the past 20 years have reportedly seen an average inflation rate of about 3%, this figure doesn't fully reflect the impact on daily necessities. The cost of staples like chicken or eggs has skyrocketed well beyond this percentage. The Bureau of Labor's inflation metrics, while broad, don't always resonate with the actual spending habits of the average American.

To effectively counter inflation, one must aim for returns that surpass the inflation rate. Merely storing money in a zero-interest bank account is a losing game. To outpace inflation, a return of at least 10% is essential.

The traditional investment narrative of amassing a million dollars by retirement is overly simplistic and neglects individual needs and the realities of inflation. Financial independence should be tailored to your unique financial situation and the lifestyle you aspire to maintain in retirement.

Contractual growth,   a good example of this would be vetted notes, they have proved to be  an effective strategy against inflation. These notes offer a fixed return, similar  to a CD, providing clarity on what you'll earn. By prioritizing contractual growth strategies and investing in proven opportunities, financial freedom isn't just a dream—it's a very attainable reality.

So, let's embark on this journey together. With the right strategies and a bit of guidance, we can navigate the challenges of inflation and market volatility, paving the way to a prosperous and fulfilling financial future.

Want to find out what assets I'm adding to my portfolio? Curious how I'm restructuring to "recession proof" my finances? Then book a call with me HERE!

Check out our Cash Flow Hacks podcast to learn more about what the big banks and your financial advisor don't want you to know!   

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