Inflation is the process by which goods and services that have not increased in quality or value increase in cost. It increases the price of everything, from bread to movie tickets. And it’s dangerous to the everyday life of a consumer in the United States – or anywhere else.
Inflation is typically measured by the Consumer Price Index, or the CPI, which measures the change in the cost of thousands of products and uses an algorithm to calculate the average rate of inflation on these items. An example of the drastic impact of inflation is the fact that in 1975, the average cost of attendance for a four-year public college was $2,387 per year – and nowadays, the average cost is $9,410 for the same quality of education. In 1976, you could easily buy a car for $3700. In 2015, even the most inexpensive midsize car cost more than $16,000.
So what, you might think. Things being more expensive isn’t a problem as long as salaries are rising, too. But the problem is that they’re not. Sure, salaries are rising in tandem with inflation, but they’re not doing so fast enough to keep up with the rising cost of quality of life. Inflation is eating away at American’s ability to live a good, relaxed life because it means that people who work the same amount as they used to now have to be more careful with their money. Coupled with the current problems in our country’s economy and the fact that many people are out of work, inflation is causing serious problems.
Inflation also makes retirement complicated and daunting. People who are currently working are looking towards retirement with stress as opposed to eagerness, due to the fact that if the trend of inflation continues, they will have a lower quality of life once retired than they do now. The US government uses the inflation rate to calculate contribution limits to social security or private retirement plans. The LIMRA Secure Retirement Institute calculated a potential model of the impact of inflation on retirement security and says that only a one percent inflation rate could slash over $34,000 dollars worth of benefits for retirees.
The US Money Reserve has a one of a kind way to ensure that inflation does not have a negative impact on your life and finances. The US Money Reserve is one of the US’s largest distributors of government-issued coins and the only such distributor headed by a former director of the US Mint, Phillip N. Diehl. It has had over 400,000 satisfied clients and sells gold, silver, and platinum. Gold is much more reliable than simple money, given that the value of gold is rising faster than the rate of inflation. Including gold in your portfolio will protect your finances from the inevitability of inflation, and the US Money Reserve is dedicated to helping people secure their futures with it. Diehl understands money and finances thanks to his current and former positions and is confident in gold’s ability to preserve the financial future of Americans.