Rising inflation has been a major concern over the past few years. The real value of your money can be quickly eroded if the interest on your accounts fails to keep pace with the rising cost of goods and services. So what can you do about it? Here are some Inflation-Busting Tips to help with your investments: Inflation "The Silent Thief" Price Inflation is the measure of the rising costs of goods and services across a period of time, also described as the “rising cost of living”. Sometimes described as ‘the silent thief’, savers are often left unaware of the effect that inflation is having on their savings. While you may not physically lose money as a result of rising inflation, the … [Read more...]
What are I bonds?
I- Bonds: A brief overview: In the current shaky economy, everyone is looking for safe and secure investments. Investors might have a chance at high rewards with stocks and corporate bonds, but there’s also a huge risk to putting money in either. The snowballing crises in Europe aren’t making foreign investments look any more tempting. Where can investors trust their finances if they want a solid risk free return on their investment? Well, for those of you who want to play it cool and safe with your investments, you might consider: I bonds. What are I-Bonds? First of all, I-Bonds are officially called Series I Savings Bonds. According to the U.S. Department of Treasury, I bonds … [Read more...]
How Inflation Affects Your Savings- Reduced Buying Power
Inflation and Savings When the average person thinks about inflation, the first thing that comes to mind an increase in the Cost of Living i.e. that items they purchase regularly keep getting more and more expensive. While this is true, an even greater concern regarding inflation is its impact on savings and financial planning. Inflation Hurts Savings Buying Power Inflation hurts consumer buying power, because increased costs mean spending more to purchase the same items. What you put into a savings account today, at current interest rates (which are approximately 1% APR at the time of this writing), will only buy half as much in 20 years as it does now if you figure the inflation … [Read more...]
Using Binary Options to Hedge against Inflation
Binary Options and Inflation The word “inflation” is one that has become a very familiar one in the vocabulary of traders and everyday people, especially since the global financial crisis of 2008. The reason why inflation strikes fear into the minds of people is that it is a phenomenon that reduces the purchasing power of individuals. Typically, salaries and wages do not increase commiserate with level of reduction of the purchasing power of the currency, and fixed investment vehicles such as the money market do not provide enough earning power as to cushion the effects of inflation. That is why it is important that people are made aware of other forms of investments that can overcome … [Read more...]
Impact of Inflation on Bonds Part 2
This page has moved. If you are not redirected shortly please click here. … [Read more...]
4 Practical Ways to Keep Your Small Business Profitable during a Recession
Small Business Big Profits Recession is a word that strikes fear into the heart of many small business owners and investors, and for good reason. Reports indicate that the number of failing small businesses drastically increased during the recent recession, and many are still in the process of recovering from insolvency due to the economic backlash. Although a recession certainly decreases the overall demand for products because consumers have less money to spend, there are certain companies in almost every industry that find a way to not only survive but thrive during these harsh financial times. Creatively Outdo Competitors to Increase Profits When people have less money to spend they … [Read more...]
Inflation Adjusted Stock Prices
Adjusted Stock Price Financial advisors will often tell us of the steady increases available only through the stock market and present us with beautiful charts showing the relentless march of the the stockmarket ever higher and to the right. But what about inflation? How does the stock market perform when inflation is taken into consideration? After we take the loss of purchasing power into account have all the gains disappeared? When adjusting stock prices for inflation we typically use the US Bureau of Labor Statistics Consumer Price Index CPI-U. Prices are then calculated in "real" dollars. That means that the price is adjusted so that we can see what it would have cost if prices … [Read more...]
The Doom of Wired Telecom
Advances in technology bring many changes to the business world, and certain industries that were once considered viable are now industries that should be avoided at all costs. One industry that is expected to shrink the most dramatically is the wired telecommunications carrier industry. This industry has been rapidly shrinking in response to the increasing widespread use of cell phones and online forms of communication. The need for wired communications has become so low that 25 percent of all households do not even own a land line phone. Some even predict that by 2025, land line phones will completely disappear. … [Read more...]
How Inflation Affects Personal Debt Consolidation
What is the effect of inflation? As a result of inflation, the value of tomorrow’s money decreases with regards to today’s money. In other words, you can purchase less with the same amount of money. This is commonly seen as prices having increased. This can make the situation appear more appealing for borrowers because they can buy today and pay back with less valuable dollars. But lenders and creditors don't appreciate receiving less valuable dollars. So, in order to offset the declining value lenders and creditors increase the interest rates they charge. Thus inflation in general results in increased financial problems all around. It not only results in rising commodity prices but … [Read more...]
How Global Financial Developments are Affecting the Price of Gold
Let’s face it. With the US economy facing the bitter consequences of extravagance and unscrupulous spending, it has become quite difficult for the US to manage both its public and private debts now. In this phase of post recession hangover and economic meltdown, the U.S. federal government has bumped up against its permitted borrowing limit. According to Alison Fraser, director of the Roe Institute for Economic Policy Studies, America’s debt just crossed $15 trillion, which means presently, the amount owed by the United States government to the world, is equivalent to the amount produced by the American economy per year. All these factors lead to higher prices and intensifying inflation … [Read more...]