People ask me what to do to hedge against inflation.

Well I will give you a couple of ideas.

But let me say that if the “Feds” keep printing money, inflation is likely. So this is a good question to be asking now.

So here are a couple of things you can do.

1) Real estate is a good hedge against inflation. Consider this. If you can get mortgages at the low interest rates that we have now and inflation is creeping up, you get a good time to buy. I would get a long term (30-year or more if possible) FIXED interest rate mortgage and buy a single family house(s) in your area. The result is that you now have an asset costing you very little (due to cost of money on mortgage) and it is appreciating (beating inflation) HIGHER than inflation. You will end up with a good chunk of equity. You actually have a nice arbitrage opportunity.

For example, if you mortgage was 4.5% and inflation was 8%, historically appreciation has beaten inflation by 2%. So appreciation will be 10% if you have such high inflation. This results in a 5.5% spread. So even if rent covers mortgage, you are building your net worth FAST!

2) Another way to hedge against inflation is PRIVATE LENDING – meaning becoming a private lender. Why? Anyone who has taken this class will tell you – we discuss this in the class. As a private lender, you can get a % of the appreciation from the home owner. For more information, visit www.BecomeThePrivateLender.com.

So keep an eye on the Feds for now!

BTW, if they start increasing interest rates, then pull out of the stock market FAST!

Hope that helps.