Lots of folks wrote off concerns about inflation…
I wasn’t one of those folks. Instead, I have been writing for months that we need to take inflation seriously.
Back in June, I wrote, “America is about to experience one of the greatest inflationary periods in our nation’s history.”
It was a bold statement, sure. But all indicators pointed to soaring inflation. Now, high prices are hitting consumers across the country.
The price of a dozen eggs is 29% higher than it was one year ago. Gasoline is more than 50% higher. Even something as basic as electricity is 5% higher compared with last year.
Inflation should be the No. 1 concern for many retirees right now. It’s hitting all of our wallets hard.
Today, I want to give you some actionable advice that could help you profit from today’s record inflation… (And by the way, I think we’ll continue to see inflation for a long time.)
The common thought is that if you are in a time of inflation, you want to hold hard assets.
Something real and of practical use will skyrocket in value. And that’s true.
Crises and inflation often send people to precious metals like gold and silver. History tells us they will do well if stocks turn down and people get fearful.
But do gold and silver really have a practical use? Do they provide anything for you and your family? And do they deliver any income while you hold them through normal times?
If you think deeper about what fills a real need, it leads you to one of the best-performing assets of all time…
I’m talking about timberland.
Timber has been one of the longest-running, safest ways to build wealth. History shows it will return around 12% to 14% per year. Take a look…
Part of that comes from simple inflation. As prices in general go up, so does the price of lumber. And that’s what we’ve seen today.
Another source of returns is the appreciation of the underlying land.
We saw a big boom in timber investment after the “Yale Model” – the idea that institutions should invest in “alternative” assets, not just stocks and bonds – got popular around the turn of the century. Timberland went from an asset that was run by, well, timbermen, to one with lots of Wall Street money behind it.
More timber assets are now being sold by institutions and bought by timber real estate investment trusts (REITs).
Finally, the best growth comes from the growing trees themselves. Timber sells by the ton, so if you leave a tree for a …….