The 5 Best Investments During Inflation

Without earning compounding interest, your money's value is wasting away each year at an alarming rate. Your one dollar today will not be able to buy the same goods in the next few decades (or months at this point), and this is because of inflation. It is inflation that is measuring the services in the economy and the measures of average price levels in a country. This is the increase in price at a given point in time. Because of inflation results, the currency that you are holding today will buy less than before. With your buying power and savings at a loss, especially in a time of increasing inflation and wage stagnation (stagflation), you have to start planning to minimize it the best you can. 

Inflation is running rampant across the United States and many parts of the world right now due to many factors with prices skyrocketing. In fact, the U.S. and other countries just printed more money in the past 2 years than they have in the previous 200! The Fed continues to keep the printing press going for now. And with rapidly growing national debt adding up each year, things on the horizon don't look very promising. While inflation needs to be lowered down to a normal 2-3%, it has been hovering around 4% for awhile in 2025! Even mortgage rates are now at record highs, although they won't last forever since the red hot housing market will eventually cool. Clearly the inflation is not "transitory" as it was called for many months, and could contribute to an upcoming global recession. 

Now in 2025 it looks like inflation is starting to cool off slowly along with home prices, and eventually mortgage rates will start falling a bit. But nobody is home free yet.

Inflated pricing a complicated issue with many moving parts. The record-breaking inflation is blamed by many on Joe Biden, Donald Trump, Powell, The Fed, Russia, or China. But the truth is that no one single person or country or industry or political policy is to blame after the Coronavirus pandemic fallout that has wreaked havoc on the economy.

Nowadays just going to the grocery store or buying building materials is costing a fortune at this point, if you can even get the products you are looking for at all in our new inflation nation. There is a noticeable shortage on all items, and prices are reflecting it. Empty shelves and panic buying are occurring even now, especially around the holidays. Even the almighty Dollar Tree will be raising prices on some items above $1 soon! Some products don't increase prices but instead just reduce size or quantity to cut costs.

This is why it is essential to have a hedge against inflationary price increases. When prices go up, you need an investment that will go up in value, and your portfolio should be able to keep up with the costs as you age. In addition, the economy of a particular country can rapidly contribute to inflation. This can be in the form of a rise in wages or rapid processing of oil and other raw materials. 

It is natural to have inflation in the market. However, who wants to lose money over time? It helps to lower your bills and save more money, but what you really need to do is invest in things that give you a return higher than the level of inflation. This is why many disciplined investors are going into other asset classes when they notice that the markets are going to turn into a climate of inflation. Some of the top assets that you may consider to fight inflation include the following: 

5 Top Investment Options To Fight Inflation

1. Gold 

Gold bullions or coins are always considered a hedge when the prices are soaring. This is because gold has not lost its value over centuries, and it’s still considered by many as an alternative currency. Gold bars and specific coins are helpful when a native currency of a country is losing its value as the people’s trust in the government becomes lesser. This is a physical asset that one can hold in their hands, and the value tends to hold for the most part. 

2. Bond Portfolios 

Bond portfolios with 60/40 stock are a traditional mix of bonds and stocks, and they are considered the safest investments. They are conservative, and if you’re unsure about how to do the work on your own and are reluctant to pay for an advisor, you can consider the dimensional DFA Global Allocation instead. This can be a straightforward strategy, and like any other investment plan, it has its cons. 

If you compare them to equity portfolios, they won’t perform well over a significant period of time. There are also the effects of compounding interest to consider. It is essential that the 60/40 is only a hedge that will keep the overall portfolio safe. However, you will likely be missing out on a few returns compared to the stocks with a high percentage. Some bonds have been booming, but no investment is guaranteed in a volatile economy filled with inflation. Bonds have also been having a moment in 2025.

3. Real Estate Investment Trust 

The REITs are known to be real estate companies that operate and own some income-producing properties. These houses tend to rise with inflation, and you can invest in one that consists of a pool of other like-minded people. The pool will pay out the dividends to the investors. Of course, if you want more exposure to this but want a lower expense ratio, you can always consider Vanguard Real Estate ETFs. 

However, know that there are disadvantages when you put all your money into a real estate investment trust. They are very sensitive to the changes in high-yielding assets. As the interest rates are rising, some people find it attractive to invest in treasury securities, and the result is a lower share of prices because the funds were withdrawn away from the REITs. 

Another thing is that REITs need to pay property taxes, and this can be more than 20% of their total operational costs. If the council or municipal authorities suddenly pass a law that increases the taxes for the budget shortfalls, the shareholders may find themselves strapped for cash. 

There are certainly high yields in general, but the taxes are imposed on the dividends. Most of the rates fall at about 15%, and the dividends are currently taxed according to the higher percentage of REIT. They are considered a personal income that can raise the rates and potentially put you in a higher tax bracket. 

4. S&P 500 

Stocks are still the best choice when you want to invest for the long term. Businesses usually have gained from inflation, especially if they require little capital as a start-up. Those that are often dependent on natural resources are considered losers. 

Today, the S&P 500 has a high enough concentration when it comes to communication services and technology businesses. They can account for more than 35% of the stake in the Index. Overall, the communications and technological developments serve as capital-light for many companies, and they can emerge as winners afterwards. 

If you are going to invest in the S&P 500, you need to look into the SPDR ETF for the S&P 500 that will be a watch list on your behalf. However, like any other investments out there, specific disadvantages may be present in the S&P 500 Index. One of the significant drawbacks includes giving a higher priority to many companies with a lot of market capitalization. The stock prices for the larger companies will influence the Index in no time. Also, there are no exposures with the small capital companies that historically provided the best returns. 

But when it comes to the very basics, you can get around a 9% growth per year investing in the stock market compared to a 3% loss to inflation each year. And all the compound interest from dividends really adds up.

5. Income From Real Estate 

The income from real estate comes with rentals. The amount and cash flow you receive every month can beat inflation. When the inflation rises, expect that your home will also increase in value. This is because the landlord can charge a higher amount each month. The result is that there will be a higher rental income that keeps up with the inflation. This is one of the best reasons you should consider investing in real estate if you want diversification. 

However, know that there are cons to real estate investing. First, you have to cough up a considerable amount of money for the initial investment, and the transaction costs are higher than what you may have anticipated. Additional costs like insurance, repairs, and maintenance can't be forgotten as well.

The second thing is that houses and real estate are not liquid, so you can’t quickly sell them without substantial losses in their value. Purchasing a home will require maintenance and management, and you also have a great deal of financial liability if you don’t research this industry before getting into it. And don't forget about other costs like property taxes or condo HOA fees!

In addition to rental income real estate or flipping properties, you can also invest in land if you speculate that it will increase in value over time.

Ignore Inflation Increases 

Inflation can be tough on your personal finances, small business, and retirement planning. But utilizing the above investment options, potentially along with cryptocurrencies like Bitcoin or other precious metals like silver, will ensure that your investing goals aren't inhibited. With a smart strategy including the tips above, you can inhibit the inflation inflammation!

7 Retirement Savings Goals To Retire Right

Are you in your early 20s and just starting to make your own real money? Or are you already in your mid-40s with kids starting to grow up? Regardless of your age, you need to consider planning for your retirement to achieve ideal results. Without a retirement plan, you may be working into your late 60s or even early 70s! This is not a scare tactic or an attempt at financial shaming. It is an unfortunate reality, especially with social security at risk of being gutted in 2025 and tariffs wreaking havoc on the global economy. 

It is sad to note that a quarter of Americans do not have savings for their retirement. Younger people aged 18 to 29 make up 45% of Americans who do not save up much or anything for their future retirement. The retirement numbers, however, improve as people age. 

Nevertheless, millions of Americans do not know how to save enough money. The key is to set retirement savings goals so you can retire right and before you get too old or frail to enjoy life.

You must take your retirement planning into your own hands because nobody can guarantee Social Security, Medicare, and your investments will remain fully intact when you reach age 65 or 67. If you want to retire even earlier, you must be even smarter and more aggressive with your earnings, savings, and investing.

Continue reading below as we discuss seven important goals for your retirement planning done right for 2025.

The Need to Save Up Early

We see it in the media and we hear it from senior citizens we know: An elderly person ending up dirt poor upon reaching their retirement age or very shortly after. 

Though many are aware of the risks of not having a retirement fund, they still do nothing about it until they are all too close to being retired.

The only time they will scramble to save money for retiring is when they are too old or weak for a 9 to 5 job. Sometimes, they will only realize the importance of a retirement plan when it is all too late.

Hence, you need to start somewhere with your retirement planning. In case you feel that you cannot keep up with the savings, there are options like the Secure Act to give you a boost. 

But the best way to kick-off your retirement plan is to come up with retirement savings goals. And you need to start working on them as early as today if you want to retire right tomorrow.


Retirement Savings Goals

When it comes to financial goal-setting, there is a lot to consider. However, some money goals are non-negotiable. Furthermore, you need to realize that these retiring financial goals come with a timetable.

You need to attain specific retirement goals once you reach particular age brackets. These financial goals should also take into account inflation and taxes, since both are on the rise.

Let’s take a look at seven of the most important savings goals you should focus on to retire right.


1. Start with an Emergency Fund

The best time to start working on your retirement goals is in your early 20s. This is the time when you are on your first or second job. Thus, your first goal is to have a fully-funded emergency fund by age 25. 

An emergency fund will serve as the backbone of your retirement plan. In case an emergency happens, the fund will cover the expenses. You want to create a fund that is equivalent to at least three to six months’ worth your salary.

Also, consider securing personal health insurance. By age 26, you will be living on your own. Hence, you don’t want to get sick without any coverage or it could cost you a fortune for treatment.

Finally, this is also the stage where you need to start your contributions to your retirement fund. Try to go for an IRA or 401(K). You can start a Roth IRA or Traditional IRA free at most banks or brokerages. If you start your contributions while you are young, you will maximize the power of compound interest. When it comes to investing, sooner is better! 

Another option in 2025 is opening a high yield savings account (HYSA) now that interest rates are 4-5% or even a little higher. An HYSA is a secure and liquid account with minimal or no restrictions that can safely grow the money you save. Just be hesitant to invest in regional banks and don't invest more than $250,000 into any one account, so you can maintain FDIC insurance on your balance.


2. End Your Student Loan Debt

Once you reach around 30 years of age, your focus must be beefing up your financial foundation. You don't want to be paying huge student loans into middle age. Thus, your first goal is to settle your student loan debt as fast as you can. This is crucial considering you will soon need to save up for your kids’ college tuition. To pay off your own student loans sooner, consider a debt consolidation company.

Once you put to bed your student loan debts, start working on your home down payment or improving your existing mortgage. You want to have a home you can truly call your own, right? Then save around 20% for the down payment and aim for a 15 year fixed mortgage if possible to minimize interest paid. 

If you already have a family, consider buying a life insurance policy. Also, establish a last will and update it every year to protect your family finances.

Lastly, increase your retirement contributions to 15% of your income to ensure you can retire securely.


3. College Plan for the Kids

By the time you hit your 40s, your main goal is to work on your kids’ college expenses. Don’t be like other parents who only start worrying about their kids’ college when they are a year away from it.

But first, make sure to eliminate all your consumer debts. These are debts that are outside your mortgages.

Moreover, make it a goal to save an amount that is twice your annual income. This is the amount you want to put into your retirement fund.


4. Reach Your Maximums

While still in your 40s, you also want to hit your savings maximum. Doing this will help you reach a target of having $1.5 million worth of savings by the time you reach 67. 

The computation is to save $10,000 every year with a 9% interest rate in effect. Sounds hard right? This is doable if you fund your 401(K) up to the maximum limit.


5. Mix and Maintain

Another important goal for aspiring retirees is learning how to mix and maintain your investments. 

The key to maximizing the gains of your investments is diversification. This means not placing all your eggs in one basket. 

People in their 40s still have a relatively high-risk appetite. However, they must also be wise where they put their money. 

Consider investing in stocks, ETFs, and mutual funds. But make sure to leave some of your investment eligible money for more conservative options like bonds or even gold.

Additionally, you need to learn how to make tough financial decisions when necessary. Make some financial compromises with your purchases if needed, but not at the expense of your retirement savings.


6. Go the Extra Mile

By the time you hit your 50s, your goals must be solidifying your financial foundation. Do this by paying extra on your home loans or mortgages. This is doable now that you already eliminated your consumer debts.

If you finish securing your children’s college fund, channel some of your extra dollars toward your home mortgage.

Additionally, consider buying long-term care insurance when planning for retirement savings goals.


7. Apply the Finishing Touches 

Once you reach your 60s, your goal is to fine-tune your retirement goals. Talk to a financial adviser and ask for guidance if you need to make any tweaks in your finances.

Also, revisit your life insurance and last will. Update these financial policies if necessary to improve your final financial plans. 

It is also about time to transition your investment portfolio to being more risk averse. Consider transitioning some of your stock holdings into bonds or annuities if it makes more sense.


Increase Your Financial Knowledge

By working on these retirement savings goals early, you will save up more money without feeling much pressure. Furthermore, you will get to secure the future of your kids and avoid becoming a financial burden in retirement. Retire right!

But financial knowledge and budgeting isn’t all about retirement. Hence, we invite you to increase your knowledge by checking our other articles to help you retire securely. We provide guides and tips to help you become a wiser manager of your financial and retirement resources.

Is A 401K Enough To Retire On?

Answering the question of whether or not “401k is enough to retire” is rather dicey since it is influenced by many financial factors. However, I can assure you that it is better to plan than no plan at all, as the cost of the latter is always greater than the former. 

For those you may be wondering what a 401k retirement plan is, let’s give a brief introduction as to what it is, what it entails, its influencing factors, risks involved, and finally conclude if or not a 401k retirement plan is enough to sustain an individual after retirement. 

Definition 

A 401k retirement plan is an employer-sponsored retirement scheme that allows an employee to invest a percentage of their pre-tax salary (this process is usually automated) into a retirement account. Employees have the luxury of selecting their preferred form of investment from a variety of choices such as; stock, bonds, material funds and cash.  It is a tax-advantaged and is named after a section of the U.S. Internal Revenue Code. Employers can also decide to make matching contributions which would greatly increase the revenues of the employee. 

Types Of 401K 

There are basically two types of 401K plans, there are traditional and Roth and they differ primarily in how they are taxed. 

1. TRADITIONAL 401(K) 

In the traditional 401k retirement plan, the employee’s contributions would reduce their income taxes for the years they remain in the program, but their withdrawals would be taxed. 

2. ROTH 401K PLAN 

In the Roth retirement plan, however, employees make contributions and their incomes are taxed, but their withdrawals are tax-free. 

Planning a 401k whether Traditional or Roth has many benefits for retirement- savings employees. It allows them to make wage deductions on a pre-tax basis, it could also be in the form of tax in other cases. In addition, all proceeds from scheme 401k are based on taxable income. 

Some Facts About The 401k Retirement Plan 

Since every investment may have its downsides, let’s look at some facts that may not be so great concerning the 401K plan; 

1. Although a 401K plan is a brilliant way to save in view of your retirement, it may not be enough to set aside a comfortable amount of funds, in part because of IRS restrictions (seeing they are limited to what an employee and employer can invest). 

2. Inflation, and tax on 401(k) allocations, undermines your savings (According to research, a 1% inflation rate could cost the retiree up to $34,406 of his benefits. If the inflation rate were to increase to 4%, it would cost more than $139,000), and the value rises t is a massive advantage to the retiree (but the latter case are typically rare). 

3. If you want to withdraw from your 401k early, you will have to pay a fine - plus taxes - on the amount, you intend to withdraw. This is because 401k accounts are closed accounts and are not accessible to retirees until the appointed time. 

Restrictions On The 401k Retirement Plan 

We have reviewed that limits are placed on how much percentage of salary is meant to contribute. For example in2021, IRS regulations limit the percentage of salary contributions to a maximum contribution of $ 19,500. For someone making more than $ 150,000 a year, investing a higher income will give him a savings rate of only 12.67%. And when a person makes more than $ 150,000, their percentage of the contribution will be less. 

The problem is that the 12% savings rate might be too low to achieve a comfortable retirement. There are also restrictions on the way in which employees can dispose of these items and that they are allowed to do so without having to pay tax. 

Given these 401Ks basics, even if you save a lot, your 401k is probably not going to be enough to retire, as you can never save too much for the future. Here are some factors that may affect this;  

Fees And Cost Consolidation 

The effect of administrative fees on 401K accounts and associated funds can be severe. These costs can be swallowed up by more than half of a person’s savings. 401k usually consists of more than twelve undisclosed amounts, such as trustees' funds, bookkeeping fees, acquisition fees, and legal fees. It is easy to become downhearted after a relapse. 

Mutual funds within 401K usually take 2% off the top. If the fund increases by 7% per annum but takes 2%, you are left with 5%. It sounds like you are earning a lot of money, but the magic of the wallet business makes part of your profit disappear because a 7% compound will bring back hundreds of thousands more than a 5% return. A 2% withdrawal amount reduces the return on investment. When you retire, a mutual fund may take up to three of your profits. 

The best options would be to invest in lower indexes. Also, look at the easy-to-use daily targets, which find their way to more than 401k programs, but check out the fees as well. 

Inflation And Taxes 

The cost of living is constantly on the rise. The effect of long-term inflation is generally underestimated. Many retired people believe that they have enough money to sustain them from their 401k accounts and that they are in good health, only to discover after an extended period of time that they would have to reduce their living expenses else they would struggle to make ends meet. 

Taxes are also a big problem. Admittedly, 401k are tax-deductible and grow tax- free. But when you retire and start withdrawing money from your 401k account, the distribution will be added to your annual income which will be taxed on you by the current income tax rate. Like inflation, that price may be higher than you expected 20 years ago. Or perhaps the nest egg you have been building on your 401k for over 20 to 30 years may not be as large as you might expect. 

According to Marguerite Cheng, the chief executive officer of Blue Ocean Global Wealth; “All tax deducted dollars, which means that for every $ 1 you save today, you will have only about 63 to 88 cents based on your tax brackets. For those earning a lot, this is a very serious matter as they are in the top tax bracket. The $1 million balance is not the $ 1 million you can spend on retirement” after taxation from the IRS.

Funds Are Not Readily Accessible 

The income of 401 (k) is actually locked in a safe that can only be opened when you reach a certain age or if you have appropriate exceptions, such as medical expenses or permanent disability. If not, you will suffer fines and early withdrawal taxes. In short, 401K money is not readily accessible. So in cases of emergency, you would not be given any consideration as you may incur a penalty and tax of over 10%. 

Other facts that could be considered are; loss of job for 3 to 6 months, change of jobs (probably with lesser earnings), and ability to cope with the yearly deductions. 

401K Final Thoughts

In conclusion, whether a 401K is enough to retire is dependent on several factors. At the end of the day, this may be a conversation you want to have with a financial advisor. However, since a 401K retirement plan may not be sufficient to keep you afloat long after retirement, it is essential to take precautions by building in other means of investments, having a part-time job can also be a lot helpful. 

In all, one cannot save too much for the future considering the uncertainties our world is filled with. It is better to save more money for retirement than you think you will need, with your 401k and other investment or savings vehicles!

Why 401K Investing Is Right For You

Making The Right Financial Decision 

We are in the midst of an enormous financial crisis right now as inflation is eating up economies all over the world. From the United States of America to Sri Lanka, we are seeing people take matters into their own hands in an attempt to prevent themselves from slipping into serious debt and financial ruin. This is why folks are considering making investments that they never considered before and are opening their eyes to the possibilities available to them beyond what their traditional paychecks can do. If your parents raised you to earn an honest living, they genuinely believed that you could become wealthy as a result of simply taking home your monthly stipend as savings. But savings and frugality alone don't build wealth, especially with inflation running rampant and low savings account interest rates. Your uninvested savings and cash are losing value every year due to inflation.

Nowadays, the mere thought of becoming wealthy is a pipe dream for many, and we consider the chance to just survive as very important. Gone is the obsession with becoming ultra rich and present with us today is the chance to consider merely surviving before we can get the chance to thrive. Therefore the financial investments we make must be robust and considered, because we are not just building legacies, we are building life support rafts for ourselves in order to merely survive the next few decades. People simply make money to get by each day, and we want to make things less difficult for ourselves financially these days. 

This is why we have to make wise decisions with the 401K plans we have invested in over the years, as the cost of our labor is invaluable in a lot of ways. And so when you begin to make the investigation as to exactly how do you buy gold with your 401K, this is an investment vehicle where you can consider your own wants and needs as you take risks and follow your dreams as an investor. Every entry in your financial diary will be useful to you in this endeavor as the decisions you make going forward will rely on your faith in a market that is dependent upon precious metals like gold, platinum and silver. 

Financial Investments Are Critical 

You probably already have a general understanding of gold and how important it is as a commodity, specifically because for as long as you have been alive, you have likely had some sort of interactions with gold. Many people’s family heirlooms are made of this previous metal and as a result, the ideal that you can make an investment in something that is so sturdy in the face of fluctuating prices of commodities all over the world is an ideal position to be in. If you have ambitions of any kind, from political to social and economic, you are going to need the kind of capital that a wise 401k investment can offer you. 

Learning as much as you possibly can about the diverse financial instruments available to all of us these days can only help you in the long run. For example, you may want to diversify the portfolio that you have available to you, and precious metals can offer you a really simple but also very sophisticated way of accomplishing that as quickly as possible. Why is this the truth? This is because investment vehicles related to gold and other precious metals have already been built out due to the trust that the global market already has made an effort to build out our appreciation of gold and silver and other such items. 

401K All The Way

Some things will change over the course of time. For example, when our parents were children, people got dressed to the nines to fly aboard aircraft. The also smoked inside the planes and drank handles of hard liquor as they cruised ten thousand feet. Therefore before the oil crisis of the 1970s, it would make sense to any investor to spend as much money as possible on the airline industry. But if you spent all that money on airlines back then, you might have wished you would have been able to learn more about the stock market and invested in gold instead, as the investment in an airline would not retain its liquidity over the course of many decades. So putting your 401K in gold is probably a great idea instead, if you and your financial advisors approve of it!

What Financial Advisors At Cedar Smith Management Do

When the average person hears “financial advisor,” it is curious whether these services are for everyone or only the wealthy. The premise of a planner is that they offer guidance and investment advice for people who have difficulty with self-management. But that isn’t their only role. 

There are many facets to what a credentialed, established advisory like professionals at Cedar Smith Management can offer. These can include developing strategies meant to accumulate wealth over the interim and helping the average individual eliminate the potential for financial risks with the eventual purpose of meeting set goals. 

Not all financial advisors are created equal, with the potential for varied certifications and degrees. That means the diverse group of financial advising providers can offer a vast array of services, not all of which deem being clumped into a stereotypical box labeled as complex or confusing. 

Instead, these experienced CFA professionals can simplify processes, for instance, helping you plan for the future, perhaps with retirement, or deal with the intricacies of an inheritance. Let’s look at more of the areas that finance advisors concentrate on. 

What Are Some Things That Financial Advisors Do 

In organizations like Cedar Smith Management, financial advisors, each uniquely qualified, strategize with the average person to meet different goals. When selecting a certified financial advisor, it is vital to research someone who specializes in handling your specific circumstances. 

For instance, if you have decided it is time to work toward planning your estate, not all advisors work in that specific area. It will take someone with the training to be able to help you achieve the optimum outcome. Find traits for successful financial advisors and then check out a few of the areas the planners focus their attention on. 

● End-Of-Life Planning Doesn’t Have To Be Difficult 

Estate planning is one area that financial advisors concentrate their attention on. When you reach an age where you decide it is time to begin planning details for your will, it can become solemn, but it doesn’t need to. You can start to make arrangements at any stage in your life. It doesn’t have to come in the golden years. 

Some people choose to create a will when a baby is born or when they purchase a new home. Others decide to consider options after operating a successful company for a significant period of time. 

The idea is to consider what you intend to do with the assets or how you would handle custody of your child in the instance of your death. 

You might alter the contents of the document a few times over the years as circumstances change, but just having it outlined is often enough to give the client peace of mind. The financial advisor, perhaps a wealth manager depending on your estate, will help to strategize the ideal plan meant to ensure your wishes are met. 

● Planning For The Long-Term Can Be Simplified 

Along the same line of estate planning, healthcare costs for those over the age of 65 and retired can exceed $1 million. How does the average individual or couple prepare for these sorts of costs during that period in life? 

Fortunately, some financial advisors specialize in helping individuals in the area of long-term care insurance. 

You, again, don’t have to wait until the last minute to look into the services with fear that you will be able to make the necessary arrangements. It is possible to select a plan that you can afford currently and which will work for you when you will need it critically in the future. Click for details on when it is wise to loo k into getting a financial advisor. 

Final Thoughts On Financial Advisors 

Often a blessing can seem like a burden when a loved one leaves an inheritance. Still, a diverse group of financial advisors like those you will find at Cedar Smith Management can help you understand the tax implications and offer you guidance on the wisest ways to utilize the funds from a wealth manager’s standpoint. 

A financial advisor is someone you could spend a few years with if you find the right person. This is why the individual needs to be someone you mesh with in personality, compatibility, authenticity, and value, along with the critical logistics. Ideally, when you enter a career path, you will seek your financial partner to help you strategize the journey to a prosperous future.

Frugal Financial News And Investing Insights

Cryptocurrency is facing real regulation threats. Thousands of cryptocurrencies are now traded 24/7 around the globe, without many rules to oversee it. Many countries, including the United States, want guardrail protections. Last week, SEC Chairman Gary Gensler said the Commission would try to maximize regulatory protection of the "Wild West" of crypto. Gensler wants crypto to be regulated in the same way the SEC oversees securities (like: stocks, mutual funds, and bonds). Crypto markets and cryptocurrency exchanges don't have the same controls and protections as the stock market. No single regulator oversees them. This is because most cryptocurrencies are classified as commodities, not securities. So, they are not under the purview of the Securities and Exchange Commission (SEC). Gensler believes many cryptos function like unregistered securities – and should be SEC-regulated as soon as possible.  

The total market cap of cryptocurrencies skyrocketed this year, as coins like Bitcoin, Ether, and Dogecoin gained mainstream appeal. That is also led to more volatility, crypto scams, and money laundering. Now, more countries are considering crypto regulation — or are already enforcing it. The SEC wants to protect crypto investors against fraud and manipulation. That could mean crypto becomes less anonymous — and more regulated. The EU already proposed tightening rules on crypto transfers to make sure they are traceable. Meanwhile, India has been considering a crypto ban for quite some time. Because of its limited purview, the SEC’s strategy has centered on suing token sellers case-by-case. Gensler is calling on US lawmakers to grant the SEC more power to oversee the industry. But regulation could take years. 

Cryptocurrency being unregulated, decentralized, and hard-to-trace nature is core to its identity. Some enthusiasts want it to stay that way. But Gensler and some companies believe crypto's survival depends on regulation. Gensler says that just like traffic lights and speed limits helped make cars mainstream, oversight could boost trust in crypto and allow it to grow. Still, we don't know whether regulation might happen — or what it might look like if it does. But with the rise of meme crypto causing price volatility and Robinhood prioritizing risky coins like Dogecoin, it may only be a matter of time before cryptocurrency oversight is a reality in the United States or worldwide. 

As the Delta variant spreads, Covid restrictions are cropping back up around the world. The CDC recommended re-masking indoors. Half of California is back under mandatory indoor mask mandates, and NYC is requiring proof of vax status for some indoor activities. Meanwhile, Home Depot, McDonald’s, and Target are requiring many workers to mask up again. The chances of more lockdowns are low, but investors are worried Delta will slow the recovery.

The US unemployment rate is 5.9% — nearly double pre-pandemic levels. But there are still more jobs than job seekers, and employers are struggling to hire. Some reasons workers aren't returning: Covid fears, child care needs, and boosted unemployment benefits. 

Now, companies are doing more to sweeten the pot for their employees. Target and Walmart will pay 100% of college tuition for their workers. And CVS is boosting its minimum wage over the next year to $15, the target number of most Democrats in previous legislative attempts to raise national minimum wage.

Airbnb has been resilient during the pandemic by embracing the work-from-anywhere life. It added a new feature that allows renters to search for flexible dates and destinations — including boats, farms, and even shipping containers. Last quarter, Airbnb's sales even beat pre-pandemic levels, as you staycationed in a yurt. We will see if that favorable trend continues when Airbnb drops earnings on 

The company 23andMe drops earnings on Friday — its first checkup as a public company. Shares of the home DNA testing company have plunged 20% since its February IPO, as fewer people bought its ancestry and health kits. But it’s building a longer-term revenue stream: partnering with pharma companies like Genentech and GlaxoSmithKline to develop drugs with its trove of genetic data.

Rihanna just gained billionaire-status thanks to her 50% stake in Fenty Beauty, as the celeb-preneur biz model thrives. You too can be a boss-lady billionaire!  Jack Dorsey’s Square dropped $29B on acquiring Afterpay, because "buy now, pay later" is Zillennials' favorite option. Shine: Reese Witherspoon sold her female-driven production company Hello Sunshine for a reported $900M, as the content wars intensify.

Fueled by rapid consumer adoption of restaurant and grocery delivery services, the foodtech vertical delivered another strong quarter in Q2 with startups around the world raising $6.2 billion across 280 deals. Our latest Emerging Tech Research report explores VC activity in the foodtech sector, highlighting key deals, exits and industry opportunities in the food delivery market. Key takeaways include: Ecommerce-focused food suppliers led Q2 funding with $3.1 billion invested across 29 deals. Ultrafast grocery, the latest online food delivery trend, is characterized by startups offering 20-minute-or-less delivery of goods, betting on consumers who prefer spontaneous food orders over trips to the store. The latest protein to garner VC attention is microalgae. Several corporate food companies have formed partnerships with microalgae providers to develop new plant-based products and reduce their carbon footprint. The food delivery market in India is estimated to exceed $21 billion by 2026. As the market is large and under-penetrated, it is believed that ghost kitchens will play a greater role in the development of India's food delivery market.

Over the past decade-plus, venture capital investors have been searching for the next Silicon Valley. And the COVID-19 pandemic accelerated the hunt, with industry heavyweights touting the benefits of moving to cities that embrace tech culture. Collin Gutman, co-founder and managing partner at SaaS Ventures, joined the "In Visible Capital" podcast to discuss what it takes to grow venture ecosystems in cities outside traditional tech hubs, and why he's more bullish than ever on the future of tech. The episode is sponsored by Vanta. Topics include: How Miami has emerged as a destination for tech companies and VC, and what other cities could soon follow suit. How a mix of state-run funds and private capital can contribute to building a startup ecosystem. Why institutional investors should think about geographical diversity when teaming with startups.

Caribou Biosciences, a UC Berkeley spinout, uses a CRISPR-based approach to develop "off-the-shelf" therapies and potentially broaden the use of engineered immune cells in cancer treatments. The company recently raised $304 million. Caribou Biosciences (NSF-1315621) is one of hundreds of deep tech startups funded annually by the National Science Foundation, a government agency that plays a central role in accelerating discoveries into the marketplace. Each startup can receive up to $2 million to support translational research and development. NSF helps teams navigate the earliest stages of technology translation, investing roughly $200 million annually in startups. In the last five years, these companies have gone on to raise billions in follow-on capital, and the portfolio has had 100-plus exits.

Moove, a provider of revenue-based vehicle financing services for drivers in Africa, has collected a $23 million Series A co-led by Speedinvest and Left Lane Capital. The company also announced it has raised $40 million in debt. The Nigerian startup, which caters to the continent with the lowest per capita vehicle ownership in the world, is Uber's exclusive car financing and vehicle supply partner in sub-Saharan Africa. Clocktower Technology Ventures and Spartech Ventures also participated in the funding, among others. Moove is the latest entrant in the African fintech market to attract investor attention in 2025. Fintech startups in the region have secured around $330.5 million in H1, more than double the amount raised the entire year before, according to a report from Disrupt Africa, a tech-focused research and news organization based in the continent. 

GP stakes deals have surged in popularity over the past five years, with tens of billions of dollars flowing into the strategy. Yet the blistering growth has some industry observers questioning its future—and what investment prospects may remain. Plenty, as it happens. GP stakes deals are in a lush opportunity landscape, with $100 billion-plus in potentially available value, our analysts argue in our recent research note. Among the takeaways: The middle market offers the best supply-and-demand dynamics compared to larger or smaller GPs, with less than $10 billion currently targeting the space and over $40 billion in capacity. Buyout firms have long been the favored choice for GP stakes investors, yet growth equity targets have become increasingly attractive based on their return profiles, fees and holding periods. Private capital managers are opting for more IPOs, signaling a change in how they view outside ownership. More may be willing to sell stakes—or the top end may have less capacity than expected if firms go straight to the public markets.

SoftBank's decision to halt investments in China is likely to add fuel to the investment firm's push into less developed markets around the world. Chinese startups have long been a cornerstone of SoftBank's portfolio, but their influence is waning. Just one in 10 new deals have come from the country this year. The Japanese investor remains significantly exposed to Chinese tech. Regulatory headwinds from Beijing have battered the stocks of portfolio companies like Beike and Full Truck Alliance in recent months. In the long term, SoftBank CEO Masayoshi Son is bullish on the potential for Chinese innovation, especially in artificial intelligence.

Pets and animal health are big these days so let's unpack some companion animal investment opportunities. Pet ownership has been steadily rising in recent years as people around the world brought companion animals into their homes. Against the backdrop of the COVID-19 pandemic, even more consumers became pet parents. At the same time, a growing public interest in health and wellness has spilled into the animal world, and humanization of pets is on the rise. Pet and animal health sector valuations are up as a result, and for private equity and strategic buyers in the space, competition for assets is at an all-time high. For many, a buy-and-build strategy brings advantages of geographical diversification, an ideal channel mix or economies of scale within specific subsectors.

Sports merchandise website Fanatics has reportedly reached an $18 billion valuation following a new funding round that continues a trend of investors willing to wager on sports media and sports-betting companies. Fanatics landed the $325 million from existing backers like Major League Baseball, SoftBank's Vision Fund and Silver Lake, as well as new investors including Jay-Z and his entertainment company, Roc Nation, The Wall Street Journal reported. The Jacksonville, Fla.-based company reportedly plans to use the new funding to create a digital umbrella platform with multiple business channels, including ticketing, media, sports betting and internet gambling. The financing highlights a recent trend of deals in the sports-betting sector. Within the past week, sports-betting giant DraftKings reportedly struck a deal for Golden Nugget's online gaming business for $1.56 billion, and Penn National Gaming agreed to purchase Score Media and Gaming (TheScore) for $2 billion in cash and stock.

Ecommerce platform Trendyol has raised $1.5 billion at a valuation of $16.5 billion, making it Turkey's first decacorn. The round was led by General Atlantic and SoftBank's Vision Fund 2. Princeville Capital and two sovereign wealth funds, Qatar Investment Authority and the UAE's ADQ, also participated. Trendyol has more than 30 million users and delivers over 1 million packages per day including groceries, clothes and electronics. It also offers logistics and payment services. The company, founded in 2010, also raised $350 million in March from Alibaba. VC activity in Turkey was largely stable over the past decade, but a handful of big deals have driven 2021 to record levels for capital invested. Aside from Trendyol, rapid grocery delivery startup Getir raised two mammoth rounds that reportedly totaled over $850 million in the first half of the year. Mobile games developer Dream Games also closed a $155 million Series B in June.

More and more people are flocking to the once-exclusive world of angel investing as part of a wider boom in ever-riskier investments. Cruise companies, cinema operators and retailers are watching their bond prices fall as US investors back away from debt in light of Delta variant concerns. One writer questions whether fintech companies are really as ethical as they may seem.

Stay tuned and subscribed to the Frugal Finance Blog for more financial news now!

4 Short Term Investment Options Paying Off Long Term

Can you imagine being a secret millionaire?

Living a quiet life as an auditor for the IRS, Anne Scheiber had a meager income. However, when she passed away at the age of 101, the truth came out about her personal finances.

Over the years, Anne made several wise investments and acquired a surprising $22 million in assets. In her will, she donated the entire multimillion-dollar fortune to Yeshiva University.

Anyone who wants to gain financial independence can learn a thing or two from Anne’s story. When you know how to choose the right short term investment options, you can slowly and safely grow your money over years and decades.

Are you ready to make your money work for you? Read on to learn about 4 different investment opportunities that pay off in the long run.


Choosing Short Term Investment Options

Before you start learning about the different short term investment options, it's important to remember that risk is relative. Take into account your financial situation, to assess what a low risk and high-risk opportunity would look like for you. We also suggest looking into tactical asset allocation.

Here are a few questions you can ask to determine how risks will affect you

• How many income sources do you have?
• How much of your income is expendable each month?
• What do your current investments look like?

When it comes to determining your risk, you have to be able to quantify the amounts. In other words, get specific about what low risk, medium risk and high-risk means to you.

Now that you have a better idea of what risk means in the financial world to you personally, we can dive into the different investment ideas.


1. High Yield Savings Accounts

Let's start by discussing how high-yield savings can help you build your financial portfolio. Banking institutions that offer high-yield savings or checking accounts like SCCU checking account, are great ways to slowly grow your money. A penny saved is a penny earned after all! Every little bit counts in today's tricky economy. 

Research shows that a standard savings account typically offers less than a 1% return on your money. That means you end up actually losing money to inflation each year, which has been rising rapidly recently.

However, high-yield savings accounts, offer return amounts between 1.8% and 2%, or more. The percentage of your return will vary depending on what institution you go with, and how the markets are doing at the time.

Remember, when it comes to finances, risk and other factors are all relative. While a 2% return, it may not seem like a lot of money, it is when you compare it to what the standard savings accounts are offering.


2. Short Term Bonds

Moving on, short-term bonds are another safe way to invest your money. There are a few different ways you can go about getting different types of short-term bonds.

First, you can buy individual short-term bonds. Corporate bonds and government bonds offer short-term opportunities.

You can also choose to buy mutual bonds, short-term bond funds, or short-term bonds ETF's. If you're going to use short-term bonds, plan to have your money invested for about 3 to 5 years.

Typically, you can expect to see returns starting at 2.5% and up. The return rates on short-term bonds are higher than high-yield savings accounts, and so are the risk factors.

If interest rates go up, you could see a small dip in your principles. However, as long as you are willing to wait for interest rates to stabilize again, you can earn a profit.


3. Treasury Inflation Protection Securities

The third way you can safely invest your money is with TIPS. Treasury inflation-protected securities, or tips, are a long-term investment opportunity.

There are a few different ways you can get TIPs. First, you can find reputable companies that offer you the opportunity to buy them online. When you go to buy TIPS online, it's common to see the securities for sale listed in different yearly installments.

For example, you'll have options to buy 5, 10, 15, up to 30-year investment opportunities. We suggest you steer clear of choosing anything more than the 10-year option.

While TIPS are a safe way to invest your money, they aren't going to offer you incredibly high returns. Having your money tied up for 30 years isn't as wise as diversifying with multiple investment opportunities.

You can also choose to buy ETF's, or mutual funds, which are also TIPS. At the moment, the interest rate on TIPS is comparable to a high-yield savings account.

A typical return would be 1.5 to 2% depending on how long you're investing.

One great thing about TIPS is that they work to keep up with inflation. You'll also have the added in a fit of knowing the government is backing your investment.


4. Dividend-Paying Stocks

So far, we've been discussing investment opportunities that have minimal risk. Keeping in mind that risk is relative to your financial situation, next will be discussing a slightly riskier opportunity.

Dividend-paying stocks mean you will be investing in the stock market directly. However, dividend stocks are different than regular stocks. A dividend stop occurs when a company reaches a point where they are a cash solvent.

When this happens, shareholders get the reward of being able to pay in the form of a dividend. In the stock market, there are two ways to make money. First, you can make money with appreciation, where the value of a stock grows for more than what you paid for it.

The second way to make money is with the dividend. Energy and utilities sector stocks typically have dividend options. Let's say for example that you buy a dividend stock and it doesn't appreciate at all.
You buy the stock for $10 and at the end of the year, it is still worth $10. While you aren't making any money on the appreciation and, you still get paid in the form of a dividend.

You should look for stocks that have a history of not only paying a dividend but also increasing the number of dividends your paid overtime. These can be your smartest options for investing.


Achieve Financial Freedom

It is empowering to learn about the different short term investment options that are out there. We hope that you will take your newfound power to start making wise investments today.

When you know where you stand financially, and you know where you want to go, you can achieve all of your money goals. For more ways to reach financial freedom, check out the rest of the site. Visit the Frugal Finance and Investing sections of our blog right now!

Stock Market And Gold IRA Investment Differences

The word “great depression” means many things to Americans right now and those around the world. When these words are mentioned, many people remember how the stock market and economy fared over 90 years ago. 

It was a period of doom and gloom for many people that lost their investments overnight. Investors were jumping out of tall buildings after the stock market collapsed and many people lost it all. Worst still was the fact that the unemployment rate reached an all-time high. It was a difficult period for most people. 

For the record, this is not the only time that the stock market has witnessed an unfavorable turn of events. The years 1987, 2001, 2008, and (most recently thanks to the Covid-19 pandemic) 2020 also have their stories. Now 2021 is known for peak bubble markets and 2025 as the years the bubbles burst with the reality of inflation and global recession.

All of these prove that the stock market is not absolutely formidable. It can experience big-time lows as much as there can be highs, as we have already seen in 2024 a few times due to political and economic volatility. There is always a potential dip or crash right around the corner that could be caused by thousands of different reasons around the world.

Most people that remember these incidences use them to stress why stock market is just one investment option and the need to consider other investment options. Thankfully, there are really lots of investment alternatives you can consider besides just potentially volatile stocks, bonds, ETFs, commodities, forex, and mutual funds. 

However, we advise that you also understand what your investment alternatives have to offer. Against this backdrop, we will discuss some of the similarities and differences between the stock market and Gold IRA investment for your money management. 

What Is A Stock Market? 

This is the platform where stock sellers and buyers meet to do their business. What is being sold and bought on this platform is (primarily) company stock. However, it is not limited to this alone. 

Various types of securities can also be traded on the stock exchange market. The stocks traded are a result of companies that are publicly listed, allowing people to have shares in their company. 

What Is Gold IRA Investment? 

This is an Individual Retirement Account that takes advantage of the value of gold (and other precious metal) for investment. You need to understand that most people are talking about all the allowed precious metals in the IRA market when they say Gold IRA. 

The term gold is mostly used because of the high interest in Gold by people that want to invest in precious metals IRA. This is also because of the sentimental value this precious metal has globally. So, you should not think the term refers to gold alone. 

Some Similarities And Differences Between Gold IRA And The Stock Market 

Both are opportunities to invest and you need to know what they have to offer. Against this backdrop, some of the similarities and differences between them include the following: 

They Both Have Their Risk Factors 

The risk factors should be considered before investing in anything. This is because every investment opportunity presents some risk. The fact that gold and several other precious metals have never failed does not rule out this fact. 

Having established that, you should know that both Gold IRA investment and the stock market are volatile. They can experience some dramatic highs and lows, especially if you get involved in gold ira scams that could cost you a lot of money or your entire retirement. 

However, the factors responsible for their volatility are different. In the case of the stock market, some degree of economic irregularities can even trigger a crash. For instance, the last one experienced was as a result of the Covid-19 pandemic. 

Gold has its way of experiencing value appreciation in the face of economic downturns. It is even considered one of the best hedges against inflation and economic irregularities. For more on this subject, you can visit. 

Be that as it may, you should also know that this precious metal resource and many others are volatile. However, their levels of volatility are in varying degrees. Understanding this can help you make informed decisions when investing in precious metals using the IRA system. 

Dividend vs Price Appreciation 

One question that should be on your mind when investing is how you would be able to earn returns on investment. Like it or not, the stock market presents more opportunities in this regard. 

We are not saying that it is more profitable than the other. We are simply explaining the obvious – that there are many more ways to earn from the stock market than with Gold IRA. 

With the stock market, you can earn when you get your dividend. For instance, Steve Job’s Apple brand has recorded massive feats in terms of profitability. As a result, people that bought company shares a long time ago get dividends periodically. 

Other than this, stock owners can earn when they decide to sell their shares (or a portion of it). This is as long as the stock’s value has appreciated. With a gold IRA, sales after value appreciation are the only way to earn. 

Gold Is Better For Long Term Investment 

For the record, the IRA system is not the only way you can invest in gold and other precious metal resources. However, there are advantages to going this route. 

Especially when compared to the stock exchange market, history has proven that gold is a better investment for the long term. This is why taking advantage of Gold IRA plans by the right company is a good decision. 

But as rightly put, it has to be the right precious metal company. This is because of the technicalities involved in running this kind of account. For instance, there are certain types and forms of these precious metals that are not accepted. 

Furthermore, some regulations are binding on people that run these accounts. Violating them comes with consequences which can be very severe. 

So, you need to work with the right service provider to help make informed decisions as one that invests in Gold IRA. You can learn more here about the subject of working with the right company. 

Tax Consideration 

Many people have misconceptions about stock-related taxation. You should not work and make decisions based on presumptions alone. Get your facts before you do anything related to investing or taxes. 

On that note, you should know that taxation relating to the stock market and IRA investments (at large) are considerate. However, it is a lot better with the latter scenario. Just so you know, this is one reason many people prefer it over traditional IRAs. 

Get In On A Golden Opportunity 

The decision to invest in either a Gold IRA or the stock market is a big one for many people. So, they need to understand the similarities and differences between both precious metals retirement accounts and more traditional stock portfolios. 

This is exactly what has been done in this article as we explained some of them in a global economy facing inflation. Now that you are equipped with this knowledge, we believe you would make better financial decisions, especially concerning investment.