Baby Boomers Wealth to be Destroyed by Inflation

It’s coming! Inflation that is. It will be here as soon as the governments realize just how much money they have spent fighting the recession and how much of a financial burden they are placing on our children and grand-children.

The only way to pay the debt is to devalue the currency maybe 80% or more in order to pay it down.

If you are a cashed up baby boomer hoping to sit this recession out you may be in for a shock. With another $1 Trillion dollar stimulus planned by President-Elect Obama, the US and the world is going to be awash with US Dollar bills.

Remember inflation results in wealth redistribution. Didn’t we hear the term “wealth distribution” many times during the Presidential Campaign? It was mention with respect to taxing the rich and giving to the poor. “Joe the Plumber” asked the obvious question and was almost hanged, drawn and quartered for doing so.

Without getting into a political debate here it now looks like Obama will not raise taxes in the short term as everyone is telling him it is suicide to do so in a recession.

So the next best thing is to convince everyone that inflation is no longer important if the economy is about to die and unemployment sky-rocket. This may well be true in the short term. All actions taken by the US government so far support the premise that inflation is not an issue anymore.

But it is more than likely the government will let inflation get a good hold in the interest of economic growth, jobs, and consumer spending in the future. They will tell you that they can always raise interest rates to stop inflation. The real agenda will be for inflation to devalue the dollar and reduce the US governments debt obligations to the people, which includes the Baby Boomers.

The problem for Baby Boomers is they will not necessarily be working and as such their nest egg is what they will live off. If inflation is high then the nest egg loses its value more quickly over time. Baby Boomers need to understand how inflation will destroy their wealth if they sit idly by.

More important though is knowing how to use inflation to increase your wealth with potentially much lower risk than chasing stock market returns.

Over Christmas I printed off the 23 lessons from Dan Amerman’s mini course, “Turning Inflation Into Wealth” and quite frankly it was a real eye-opener for me.

Until now I still believed I might have to put a percentage of my money at high risk in the stock market to hopefully get some returns to offset inflation. My concern was that over the next 5-10 years there may be no real capital gains to speak of anyway. So it was a double gamble.

After reading the min-course I am reconsidering my long term strategy.

What Dan Amerman is saying is you need to bet on inflation and plan to use it to your advantage. In the mini course he gives plenty of examples of how you can do this. At the same time he says if inflation doesn’t occur there are ways to set yourself up to minimise the effect on your nest egg if it does not happen.

The emphasis is on reducing risk to your nest egg, not chasing returns.  But by default your returns can increase in proportion to how well you position yourself to have inflation work for you. I don’t want to go into too much detail because I think you should all get his FREE mini course.

Please note the mini-course does not provide ALL the answers. You need to attend the workshop for those. But there is a considerable amount of information in the min-course you should learn and understand.

In the Workshop he teaches you all about inflation, its affect and how to make it work for you. He strongly believes that, “an understanding of the three forces of Asset Deflation, Monetary Inflation and Inflation Taxes will be the single most important thing you can do to protect and improve your standard of living over the long term.”

Quite frankly after reading the mini-course notes I can see his point. So get his mini-course and learn how inflation can work for you.

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