We are living in unprecedented times. Never before has the dollar bill in our pocket been attacked from so many forces beyond our control. We are witnessing the destruction of our money. And, most people have no idea that this is happening. A world war, a collapse in the financial system - all will have devastating effects on our retirements. Can the moderator of this site elaborate on what IS happening, and, what we may expect going forward? I have NO IDEA how digital currency will take over. But, it seems an inevitability. Our dollar bills may be worth NOTHING very, very soon. We can’t hide from this topic. Can anyone add to this post? It looks to me like everything I have saved will be worthless.
I’m not on the digital currency/crypto bandwagon yet, but inflation is definitely on the rise, impacting the value of the dollar. That’s why I prefer to have my assets in the stock market – while there are ups and downs, it’s a pretty safe bet they’ll be resilient against inflation and then some in the longterm.
This isn’t the first time the US (or world) has seen this and it won’t be the last. Now, it is important to make good financial choices. Is that new car suddenly $50k (when it was $39k not long ago)? Pause on your wants and ask if this is really the best time to treat yourself. The 2008 housing bubble could easily repeat.
Not only money is affected by war, but our lives are also affected. A lot of products were affected and inflation skyrocketed. Pacman 30th Anniversary
miranda jane i so agree with you such scary times
At 29 years old, I’ve never experienced inflation like this in my life. It’s scary.
I think uncertainty is what makes it scary. Will inflation keep going up? Will international conflicts worsen? No one has answers.
When big, scary, uncertain things are going on in the world, I’ve found it helps to focus on what I can control.
Making sure your personal finances are as secure as possible is the best thing you can do to quell anxiety and prepare for whatever the future holds.
If you’re investing in a 401(k) or IRA, continue doing so. The stock market has good years and bad years. We’ve enjoyed a lot of good stock market years in recent memory. A few not-so-good years may lie ahead. The idea is to keep your money invested so that your high-return years outweigh those low- or negative-return years.
Remember: You don’t actually lose money until you sell your investments at a loss. Even if numbers in your 401(k) go down for a bit, they will almost certainly rebound eventually. Selling when you’re scared can be disastrous.
It’s also super helpful to meet with a certified financial planner to make sure you’re on track, especially if you’re less than 10-15 years from retirement.
If you’re worried about money in your savings account losing value due to inflation, I feel you. Check out this article I wrote about Series I savings bonds issued by the federal government. It’s a very safe investment and is fetching a 7% return that will be readjusted May 1.
Allocating a portion of your savings to these types of bonds during periods of high inflation is one way to guarantee your cash will not decline in value. It won’t protect all your savings (you need to keep some money in an emergency funds and for short-term goals) but it can help provide a little peace of mind. Remember: The U.S. government has never defaulted on paying back savings bonds.
Finally, if you’re thinking about investing in cryptocurrency, I recently wrote an article about how to get started (it is going live on our site soon). It is a very high-level overview, but it may be helpful in understanding this complex (and not-very-user-friendly) investment.
Because crypto is so voluble and constantly changing, experts recommend allocating no more than 10% of your portfolio to it— and only AFTER you’ve done your homework, learned the technology and decided you can stomach the risk.
Just like inflation, no one knows what the future of digital currency looks like. If you learn about it and decide it’s something you believe in, then you can consider investing in it.
I hope this helps. Just know you’re not alone. Lots of people are scared. Take the steps you can today, this week, next month and this year to get your own financial house in order. Easier said than done, I know, but focusing on what you can control instead of worrying about unknowns is a healthy thing to do. ?
Thank you all for the responses so far. I am grateful to those who offer encouragement. Sadly though, I must admit a background in financial planning that covered taxes and insurance for “every day Joe’s”. The reason I am saying so is that I do not believe anyone truly sees how bad things are right now. We can not compare 2008 to this year. We can not compare the Great Depression to this year. In the last 3 years the amount of money that has been printed out of thin air is more than the entire history of the United States! There is no recovery from that. Our government continues to this day doing the same. Cheering on another major infrastructure bill is not a good thing. Don’t believe talking heads on the tv either. The rest of the world is NOT happy with the USA. They are not agreeable to lavish borrowing from ourselves. The dollar is no longer a guaranteed value in the world financial system. The dollar is going to be a thing of the past. How, then, do you value what is in your portfolio when the dollar is near-worthless? Thank God I no longer own stocks and bonds. I used to have to price them, find the cost basis of old stocks, old bonds for old, rich folks. I don’t see a value for any of these products in the coming years. Even municipalities are broke. We are being driven over a cliff by the government who can not stop spending. Nobody in the passenger seats are complaining. We are whistling past the graveyard in a financial sense. I ask you all to try to look at things as if the dollar is no more, because it IS COMING. Of that I am sure. I just don’t know what follows. I was hoping that more would come to the conversation with what may happen. I truly do not know. I do have what has held value since Cleopatra was walking the earth: gold and silver coins. This is not a call for doomsday. This is a call to get a conversation started on what we could do if/when the dollar is no longer accepted. Try reading about Weimar, Germany. It is worse.
I have the same fear as you. Due to the changing world situation today, I focus more on virtual currency investment and use. In the future, digital currency will replace all paper money so I think we need to act now!
Thank you for adding to the discussion. The purpose of writing what I did was to get others to add their knowledge and experiences to the topic. I am FIRMLY of the belief that we are headed for the most serious food shortage and a collapse of our money supply system. What are the answers to it? What can we, as “everyday Joe’s and Joanne’s” , going to do to combat these things on the home level, to protect our loved ones? I do NOT have those answers at this time, but would love help in coming up with some.
As a matter of principle I do not believe in anything having true value unless I can touch it. I can’t barter with a stock certificate or a cryptocurrency. I do not own nor do I plan on buying any kind of crypto. Using electricity to get on to the internet, hoping the internet works, hoping my currency is still there were I able to sign on to the particular site, etc… I do not believe there is any chance these things will be feasible in the near future. Silver- Coins. Bullion. Land. Arable land. The only two things that would be a sure thing in the future. Gold is too expensive to use on a day to day basis. I can trade food and water for silver to someone who needs that particular thing at that time. Not a baseball card. Owning a work of art would be less valuable than a wheel barrow, in my opinion. Think turn-of-the-century, 1900. THAT is where we are heading. Personally, I believe a tragic food shortage along with a collapse of our money system is coming. THIS YEAR. I do not mean to scare people here. I want everyone to seriously consider the possibility. Then try adding what you can to the discussions. I am ready to hear anyone’s thoughts on what to do.