Originally Posted by
Trip7
Ok simple math exercise. So an average family would have maybe $6000 a month worth of spending that is inflation affected. 9% inflation bumps that by $549 a month. So basically one would have to put enough money into real estate or equities to hedge that out. Throw 65k at Oil, Coal and Natural gas and get just a 10% return(Energy will return ALOT higher than that) and you've hedged inflation.
We can make the comparison simple. 65k split in 3 energy Small/Mid Caps, Oil(EGY), Coal(BTU) and Natural Gas(CRK) Snapshot attached. See ya in 6 months
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ah, but that’s only if you’re Nostradamus and invested before the inflation spike, and assumes $65k in cash sitting around doing nothing.
So now let’s start with dedicating a portion of income to such things AFTER inflation began spiking and DCAing into it as a family is more likely to be able to do.
and let’s start from today so as to not use the benefit of hindsight.