Inflation Might be a Bitch, but Here is How to Combat it

I have long advocated the importance of financial education from an early age. Most of Joe Public has no idea about the devastating effects of inflation or how best to combat it.?Most have never even considered it. As Ronald reagan said "Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man."

It is my strong opinion that if someone started investing in a pension with 100% of their contributions in the stock market (owing small pieces of 100's if not 1000's of the greatest businesses in the world; the type of companies we all use every day of our lives 24/7 to function) for around 40 years, it would dwarf inflation and it would also largely remove retirement sequency risk altogether.?

I know that nobody can guarantee future performance, but long term history is all we have to go on. "On what principle is it that with nothing but improvement behind us, we are to expect nothing but deterioration before us?” said Thomas Babington Macauley.

Investing for 40 years from 20 to 60 and then probably another 25 years still invested throughout retirement is 65 years in the market. As an example, on January the 1st 1984 the S&P 500 was valued at 165. Today it is 5,520. This is an increase of 3,245%. Inflation has increased by 302% over the same period. I rest my case.?

Click on this calculator to see how much you would have accumulated if you were able to invest ￡1 a day from the day you were born into the S&P 500. Also look how little you invested. Naturally it matches the amount of days you have been alive.

If you want to truly blow your mind, do it again but this time make yourself 10 years older and see how little the extra contributions are compared to the huge difference in the final balance. This is the importance of starting early, the cost of delay and the incredible power of compounding over time. https://finmasters.com/dollar-a-day/?d=19840101

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