Skip to main content

“The will to succeed is important, but what’s more important is the will to prepare”

—Bobby Knight

Are you someone that has a good-sized nest egg

Do you feel comfortable in your retirement with your mix of stocks and bonds and other conservative investments?  

I can’t blame you for thinking that. That is what most of us are taught

But would you be shocked if I told you that you could lose between 50%-90% of your savings over the next 10 years? 

That’s right! You could be in for a rude awakening

But luckily for you, there are some things that you can do! Starting with a little knowledge. 

How could I lose 50%-90% of my money?

This is a topic I really enjoy talking about. 

The simple reason is that I love helping people! 

We are taught that we need to save our money, but we aren’t given the best roadmap to do so. 

Everything we do to save is under the assumption that things will be the same or better off than when we started. 

But that can’t always be the case. 

It is simple math. 

To understand, let’s look at some charts. 

Right now in the United States, we have $120 trillion of unfunded liabilities

As you can see by the above chart, that is at the cost of $200K per working adult

This doesn’t even include the total personal and corporate debt that our system has. Including that would raise the cost to $450K a person

In basic terms, liabilities are things that you owe. 

These government liabilities are made up mainly by the federal debt. However, it also consists of Medicaid, pensions, and Social Security. 

All things the government isn’t going to want to cut. 

And the government can’t default on these liabilities because if they do, then they lose the ability to borrow

That’s when the whole party stops. 

We know that the government isn’t just going to kill social security or any of these other liabilities. It’s political suicide! 

You would see a lot of angry people in the streets who have been paying into the system for years only to never get the benefits. 

So what has our government been doing to solve this? 

Printing money. 

This chart shows the total amount of money printed over time. This includes all dollars in circulation. 

If you look at the very end, that huge spike in currency is the mass printing in response to the Covid-19 pandemic. 

That uptick consists of 35% of all printed U.S. currency in existence was printed in 2020-21

That’s a lot! 

But there is an inherent problem with printing a lot of money. 

Yep, you guessed it… 

Inflation. 

As you can see, the government is between a rock and a hard place. They can’t default on their debt and they can’t cut the social programs that raise their debt. 

So they print money to get themselves out of the deficit that they already have. 

But this has long-term effects. It is a ticking time bomb. 

If you keep printing currency, the current value of the dollar gets less and less

The government will be able to pay off their debt, but the rest of us will be holding onto money that doesn’t have the same purchasing power it did in the past. 

This is what I mean when I say that your money won’t save you

If the money you have worked so hard for is worth less, then you won’t be able to live off of it in the way you planned. 

Just look at Zimbabwe. They printed so much money that they had a single bill worth 100 trillion dollars in their currency, and because of this, all the cash in their country got deflated. 

However, this inflation isn’t exclusive to cash. It affects bonds too. 

With the small amount of interest gained with bonds, that increase in value won’t combat inflation.  

You may see small increases in value with stocks to keep up with inflation, but that’s assuming you pick the right ones and we don’t have another recession

I know this sounds like I am all doom and gloom here, but this isn’t something that is going to completely ruin the US economy. Hopefully. 

What happened in Zimbabwe won’t happen here. 

The reason to understand this is to help you take individual responsibility for your financial well-being. 

When inflation comes, your money will be worth-less.

If you plan to retire in the next 5 or 10 years, then you need to be aware of this situation and know the steps you can follow to take control of your financial freedom

What you can do!!

The first thing to understand is that you can’t control inflation. No matter how much we all wish we could. That is out of our collective control. 

This is why you can’t look at savings as secure. 

To take control of your finances, you need to get into inflation-protected real assets. 

These assets are things that will retain value even as the value of currency drops. 

The two best categories: Gold & Silver and Multi-family real estate. 

What I love about gold and silver is that they are elements that we have collectively agreed are a currency for over 5000 years!

They are rare, precious, and they hold inherent value whereas dollar bills are really only worth the paper they are printed on. 

Gold and silver are used in technology and jewelry, and over time, we have seen that they hold onto their value better than other assets. 

So as the dollar loses value, gold and silver will not. 

The second one is multi-family real estate

The kinds of properties I am talking about are those with around or over 100 units. Really, this is the bread and butter of real estate

These multi-family homes are a great asset to invest in. 

Firstly, they can be invested in passively. You can get involved with as little as $75,000 (less in some deals), and you will get distributions yearly or quarterly as the property makes money. 

But past that, these properties work as a hedge against inflation. Like gold and silver, this asset holds its value. 

As rents increase with inflation, so does your income. 

On top of this, as inflation happens, the initial loans used to buy these properties become less valuable. The inflated value and income of the property then pay off that initial loan much easier. 

So really, you get a bump on both sides. The increase in value from the property, and the devaluing of the loans. 

There are also other benefits like scalability and tax advantages!

Overall, the most important thing to remember is that you need to be thinking of this situation.

Inflation is going to happen, and your bank account isn’t going to save you from it.  

The best way to know you will be secure in your finances is to get prepared now

One of the best ways to get prepared is to educate yourself, and lucky for you I have plenty of resources here to help you with that. 

Check out our special report about investing. It compares the stock market to real estate, and it also includes how the pandemic affects your investment future. 

If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.

Bronson Hill

Bronson used to work as a consultant for a medical device company but switched to investing in apartment buildings to make his money work for him. He started with a single rental property that made good money and, after some advice from a family member, moved into bigger real estate projects. Now, he's all about helping others get into this kind of investment to earn money without having to work all the time. When he's not dealing with investments, Bronson loves to travel, write songs, stay active, and help fight modern slavery through his work with Dressember. He believes in working smarter, not harder, and wants to share how that's possible with everyone.

Leave a Reply