Inflation and Why it’s so important to stay ahead of it

I don’t mind going back to daylight saving time. With inflation, the hour will be the only thing I’ve saved all year. – Victor Borge

Inflation has become a natural part of financial lives since monetary policies target a moderate level of inflation each year. We see it materialize in our daily lives as the cost of virtually everything–from education, healthcare, and food–continues to increase each year. It costs more for the similar product or service making it harder to save and invest for the future.

But what is the true impact of inflation on our wealth?

Here’s quick example:

Which would you rather have over the next thirty years?

1. 60% tax rate annually
2. 3% inflation

Well, you might be surprised that you’d have the same result since each of your dollars would be worth 40 cents given the impact of compounding inflation.



This example highlights the importance of having each of our dollars producing as much as possible throughout of our lifetimes.

One key area of our financial lives that most would agree is important is saving money for the future. My definition of savings is money that is not at risk of loss and is accessible when needed. For most, this would equate to storing money in a bank account or equivalent such as a money market account. Unfortunately for accounts that are earning 1% and are taxable, it’s causing an significant opportunity costs as the interest earned cannot keep pace with inflation.

What if you can store your safe money in a way that:
● earns 4+% in a tax-advantaged (6% pre-tax equivalent) and tax-free if properly managed,
● is accessible whenever needed with no questions asked,
● and provides protection against death, disability, and lawsuits?

Going this route can have your safe money be worth nearly three times what you would have earned taking the typical approach with no added risk. Sound too good to be true?

Well, it’s not too good to be true, and this is achievable through the use of specially designed, high cash value life insurance. Designed the typical way, you can still have benefits; however, designed in a way to maximize cash value, you’ll be able to have a highly efficient way to store your safe money that will exceed inflation, avoid taxes, and still have access to your money whenever you want for expenses and investments.


Reach out to learn how this could benefit you and your family.