How To Potentially Profit From Inflation: 4 Investment Options

How To Potentially Profit From Inflation: 4 Investment Options

Most Americans feel like they’ve been walking through a thick inflation fog with no ability to see beyond the moment. From gas and vehicles to groceries and lumber, you have been feeling the pressure of a ruptured supply chain. It remains a valid concern for those without a financial plan.

Inflation can wreak havoc on your budget, so make the effort to ensure your financial goals are supported by a financial plan and a financial advisor in San Ramon and Newark who follows a fiduciary standard with your best interests in mind.Humanity Wealth eBook: Worried About Inflation? Here’s How Subscription-Based Financial Planning Can Help You Preserve Your Hard-Earned Money. 

When prices rise quickly, people tend to panic, as it can eat into savings if there is no emergency fund on hand to serve as a safety net. A key component to staying afloat during high inflation is readjusting your spending habits to account for more expensive products and services.

However, many struggle with adjusting their lifestyle to match. Download our eBook as a free resource!

Since inflation has become such an eye-opener for people of all ages and investment levels, it’s time to use strategies to stay ahead with your wealth-building efforts. If you are drowning in debt, we have approaches for you too. There’s no need to “fight inflation”—it’s part of the economic flow that we need to get a handle on our expenses in order to lessen the impact of inflation.

Talk to Humanity Wealth Advisors about these quick strategies to help you align with inflation.

1. Determine and prioritize your needs versus wants

Without a budget to serve as a guiding light, now is a great time to get one in gear. Tracking your income and expenses can help save money to invest each month. It can become very apparent what costs need to go, for now, or for good!

Use our budgeting worksheet to begin.

2. Explore short-term bonds versus longer-term bonds

When interest rates fall, bond prices rise (and vice-versa). Short-term bonds are helpful if held until maturity. This can help alleviate your concern about the price of bonds which are affected by interest rate-driven changes. Longer term bonds offer a longer duration than short term bonds, but that implies more potential risk. Duration measures the sensitivity of changes in interest rates to a bond’s price.

3. Treasury inflation-protected securities

TIPS (treasury inflation-protected securities) can help to mitigate the impacts of rising inflation since their principal rises and falls with it. When TIPS mature, you get to keep whichever is larger, the original principal or adjusted principal.

4. Invest in yourself 

Although this should be number one on the list, we saved the best for last. Your ability to thrive through high inflation, hyperinflation, or deflation, is the highest priority. If you don’t look out for your best interests, who will? An affordable financial advisor in the Bay Area at Humanity Wealth that follows a fiduciary standard, that’s who!

Financial planning in San Ramon and Newark is now open to everyone, no matter how much money is in the bank.Financial planning in San Ramon and Newark is now open to everyone, no matter how much money is in the bank. Subscription-based financial planning is the wave of the future, so get on track and invest in #1, to have a financial advisor on your team at all times.

The San Francisco Bay Area has ample advisors to work with, but most of which require a capital requirement or minimum asset amount. Forget the thought that you don’t have enough revenue to work with a financial advisory firm in San Ramon and Newark. For $50 a month, you can afford financial advice when you need it, financial services that make sense for your financial situation, and a financial professional that knows your wishes.

Whether you are a financial planning newbie, DIYer, or a second opinion seeker, we can offer financial insight and guidance that are custom fit for your needs. You deserve to feel at ease with a comprehensive financial plan that accounts for inflation and any market condition.

Inspiration from Warren Buffet

In 2009, Buffett shared that investing in yourself and your skills is the first and best thing you can do to protect against inflation: “If you’re the best teacher, if you’re the best surgeon, if you’re the best lawyer, you will get your share of the national economic pie regardless of the value of whatever the currency may be. The second best protection is a wonderful business,” referring to a company in which the products are in demand even if the company does have to raise prices.

Remember: You are in control of your financial future and Humanity has your back

You are in control of your financial future and Humanity has your backIf you’re on a tight budget, the ultimate way to invest in yourself is to opt-in for subscription-based financial planning in San Ramon and Newark, to help maintain through inflation and beyond. With zero risk mitigation from volatile markets, you’re leaving room for vulnerability and error. Instead, reclaim your power with a professional who knows the ropes and can teach you along the way.

As the Fed raises interest rates to tame high inflation, history tells us that it will level out again, we just don’t know exactly when. Our #1 advice is to be financially prepared for any market condition.

Read: How do interest rates affect investments?

Subscription-based financial planning is a model that makes sense for those on a budget or who want an ongoing second opinion

If you are ready to up-level your financial fitness for a flat monthly fee, much like Netflix, subscription-based financial planning at Humanity makes sense. OPT-IN HERE.

Financial planning is not simple, and developing financial literacy is needed to plan for your future, which takes time and patience. You now have a viable outlet, without the worry of inflation fogging your glasses. The best thing you can do is start now!

Humanity Wealth offers financial planning services to help you hedge against inflation and diversify your assets. Let’s talk about investment strategies today! 

Investing involves risk, including possible loss of principal. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

More about the author: Harry Sherdil

As a fiduciary financial advisor at an independent firm, Harry strives to offer the same resources, tools, and research as bigger firms while serving new and existing clients' best interests.