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He said inflation is all about purchasing power.
Beating inflation, thus, takes some careful planning.
What are you doing with that cash?
Because that is the first area where things could go wrong.
He advised putting your cash to work so that it can out-earn the rate of inflation.
After you account for the higher costs of living, youre still earning something on top of that.
At minimum, we want to at least keep up with inflation, especially with our cash.
And so look at those immediate resources and ask how could they be allocated?
So is it a high-yield savings account?
But thats a trade-off that if you dont need the money necessarily in the near term.
You could trade off liquidity for a higher yield, he said.
An emergency fund should maintain a certain amount of liquidity, according to Stroup.
So that may be more preferential to put in a high-yield savings account, he said.
The stock market has been a surefire way to outpace inflation.
Thats why REITs (real estate investment trusts) exist.
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