<\/p>\n
Is inflation finally returning to Western economies, aided by the \u2018Trumpflation effect\u2019? It\u2019s been described as a \u2018hidden tax\u2019 because of the consistent destruction of value that it brings about.<\/p>\n
Taking a bite out of your investment returns<\/strong> The reality is that inflation poses a stealth threat to all investors, which is why it\u2019s important to consider ways to mitigate inflation in your investment portfolio. When you consider the return on an investment, it\u2019s not just the interest rate you\u2019ll receive but also the real rate of return, which is determined by taking into account the effects of inflation.<\/p>\n Plan to achieve long-term financial goals<\/strong>uld Protecting your portfolio against the potential threat of rising inflation might begin with a review of the investments most likely to provide returns that outpace inflation.<\/p>\n Navigating the threat that inflation poses<\/strong> If you consistently receive below-inflation interest rates, this will slowly, but surely, erode what your savings are really worth. Investing some or more of your savings could help you navigate the threat that inflation poses to your long-term financial health.<\/p>\n Putting a strong investment strategy in place <\/strong> deliver higher returns than cash savings alone can muster.<\/p>\n Inflation is a market force that is impossible to completely avoid. However, by planning for it and putting a strong investment strategy in place, you might be able to help minimise the impact of inflation on your savings and long-term financial plans.<\/p>\n INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.<\/p>\n THE TAX BENEFITS RELATING TO INVESTMENTS MAY NOT BE MAINTAINED.<\/p>\n THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.<\/p>\n PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.\t\t<\/p>\n","protected":false},"excerpt":{"rendered":" One of the biggest threats to the health of your investment portfolio If you\u2019re investing \u2013 especially for major goals years away, such as retirement \u2013 you can\u2019t afford to ignore the corrosive effect rising prices can have on the value of your assets.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/posts\/2979"}],"collection":[{"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/comments?post=2979"}],"version-history":[{"count":0,"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/posts\/2979\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/media?parent=2979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/categories?post=2979"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/tags?post=2979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nMost people understand that inflation increases the price of their groceries or decreases the value of the pound in their wallet or purse. In reality, though, inflation affects all areas of the economy \u2013 and over time, it can take a bite out of your investment returns.<\/p>\n
\nClearly, if you plan to achieve long-term financial goals, such as university savings for your children or your own retirement, you\u2019ll need to create a portfolio of investments that will provide sufficient returns after factoring in the rate of inflation.<\/p>\n
\nOver the long run \u2013 10, 20, 30 years, or more \u2013 equities may provide the best potential for returns that exceed inflation. While past performance is no guarantee of future results, they have historically provided higher returns than other asset classes.<\/p>\n
\nNot only does the value of many investment assets often rise with inflation, offering some protection from rising prices, but successful investments sho<\/p>\n