Based on the trillions of dollars our govt is creating out of thin air, I'm worried about hyperinflation in the not-too-distant future.
I've stuck with my retirement asset allocation and will continue to do so, so I'll be invested in the stock market as I've always been.
But I'm considering what to do with other non-retirement savings that we have, that are earkmarked for future goals within the next 5 years or so(e.g. buying a new car or two, doing major renovations on a house, buying another house) and emergency savings.
The impression I've always had is that keeping your money in "safe" investments like FDIC insured bank accounts and CDs will not protect you against the ravages of high inflation. But if this is money I may want to use within the next 5 years or so, where should I park it?
I'm guessing that we'll see stagflation, i.e. prices rising but salaries staying flat.
I've got some student loans at about 5%, which looks pretty tempting to pay off right now given the measly returns otherwise. And it'd be nice to reduce my monthly outlay by paying off those student loans. But I'm having trouble deciding whether that's a good idea in a stagflationary environment (as opposed to a traditional inflationary environment, where salaries are rising along with prices).
So where would you put your plan-to-use-it-in-5-year-or-less money during a stagflationary period? And where would you hold your emergency fund?
I've stuck with my retirement asset allocation and will continue to do so, so I'll be invested in the stock market as I've always been.
But I'm considering what to do with other non-retirement savings that we have, that are earkmarked for future goals within the next 5 years or so(e.g. buying a new car or two, doing major renovations on a house, buying another house) and emergency savings.
The impression I've always had is that keeping your money in "safe" investments like FDIC insured bank accounts and CDs will not protect you against the ravages of high inflation. But if this is money I may want to use within the next 5 years or so, where should I park it?
I'm guessing that we'll see stagflation, i.e. prices rising but salaries staying flat.
I've got some student loans at about 5%, which looks pretty tempting to pay off right now given the measly returns otherwise. And it'd be nice to reduce my monthly outlay by paying off those student loans. But I'm having trouble deciding whether that's a good idea in a stagflationary environment (as opposed to a traditional inflationary environment, where salaries are rising along with prices).
So where would you put your plan-to-use-it-in-5-year-or-less money during a stagflationary period? And where would you hold your emergency fund?