Congratulations: You’re 0.0186% Poorer Today Than Yesterday

Inflation is gnawing away at your money, day in and day out. Today, I’ll discuss a few ways to fight back.

How much money did I lose today? How about this month?

Those may not be the kinds of questions you ask yourself before tucking in for bed at night ... but if you did, you might be startled by the answers.

Using November’s 6.8% year-over-year rise in the Consumer Price Index (CPI), the answer would’ve been “0.0186%” yesterday. Or about 0.57% by the end of this month.

• That may not sound like a lot. But over time, it adds up just like compound interest adds up ... only the inverse!

Just imagine if you had to drop a couple of pennies or nickels or dimes in a jar every few days or weeks as a “tax” for leaving your house.

• What’s more, the trend is likely to get worse.

December data will hit the tape today … soon after you receive this. Economists have predicted that inflation accelerated to 7% last month.

If those estimates prove accurate, you can dial up those numbers another couple of notches.

Now, if you’re retired and on Social Security, cost-of-living adjustments may compensate for SOME of the acceleration.

If you’re still in the workforce, chances are your wages or salary has only increased enough to compensate PARTIALLY. Meaning, those increases haven’t been enough … at least not according to many on Main Street.

Inflation is now the No. 1 fear about retirement in the U.S., according to a recent survey by Allianz Life Insurance Company of North America.

• Some 25% of Americans worry about it eating away at their retirement plans, more than triple the 8% who cited it in 2020.

Meanwhile, The New York Times just commissioned a survey of more than 5,300 adults, finding that …

• Only 17% of the American workers polled felt their incomes were keeping pace with inflation. And, the rest said that prices were rising so fast that pay increases weren’t rising enough to compensate ... or that they hadn’t received any raises at all.

Clearly, if you’re angry about inflation, you’re not alone. But the trick is to channel that anger. To turn it into something productive — like the will to educate yourself about ways to fight back!

In my monthly newsletter, Safe Money Report, I’ve shared several strategies for pushing back against inflation with my subscribers.

In my Weekend Windfalls service, I’ve gone even further for those comfortable using somewhat more advanced techniques to ramp up their income even more.

And, of course, there are strategies that can help investors beat the inflation toll:

• Using the Weiss Ratings to identify stocks that can rise faster than inflation.

• Investing in higher-rated stocks and exchange-traded funds (ETFs) that spin off much greater yields than bank accounts, Certificates of Deposits (CDs), Treasurys or other so-called “income” sources.

• Selling options for additional premium income.

All of those are among the techniques we’ve used ... and that you can use, too!

Bottom line? Think education, adaptation, action.

That’s the best game plan. It sure beats dusting off those old Whip Inflation Now buttons from the 1970s and just hoping for the best.

Until next time,

Mike Larson