I was just thinking, how do you hedge against inflationary pressure

Seoul Gleou

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Every single one of my investments is dividend yielding but what is the point if my savings rate, where I put my investments, is less than the inflation rate? should i just reinvest it?

Never thought of this as my goal was to create passive income through any dividend yielding instruments (forget about real estate, that's all good)
 
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Every single one of my investments is dividend yielding but what is the point if my savings rate, where I put my investments, is less than the inflation rate? should i just reinvest it?

Never thought of this as my goal was to create passive income through any dividend yielding instruments (forget about real estate, that's all good)

How Inflation Impacts Investing & What You Can Do About It

How can investors beat inflation?
When most people think about losing their hard-earned money in the stock market, they imagine a dramatic event, such as investing in the wrong stock or hiring the wrong, ill-intentioned advisor to manage their affairs. But ordinary people lose money every day due to inflation.

If you have a savings account that yields a percent interest lower than inflation each year, you’re technically losing money. For example, if inflation is close to 2 percent, a .01% percent savings account will give you a negative yield over time. Do you need to “save” your savings account? Answer these two questions to find out.

One way you may be able to outpace inflation is by investing. If you can handle higher risk, you may want to consider investing in a variety of mutual funds and stocks that could help grow at a higher rate than inflation. Keep in mind, though, higher stock market returns come with a higher measure of risk. Be sure to do your research before you make a move.
 
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