Every morning before school I spend time with my sons discussing things like God, faith, money and other life topics that help prepare them to be versatile and caring young men. Of course the conversation also steers towards movies (Dungeons & Dragons, Fast 10), airsoft guns, sports (Go Buckeyes) and other things. Today’s topic was INFLATION (yuck!)
Inflation is a complicated economic tool (yes I said tool) that is measured by our government. On one hand it erodes our purchasing power (and very harmful to us working folks and retirees). On the other hand it provides a lift to our investments and other assets.
When I showed them that $100 from 100 years ago could only buy $3 of stuff today, they were SHOCKED! But the lesson here is not to be angry, but to be disciplined. It takes a lifetime to be successful and there are obstacles to overcome, such as inflation. Saving money and not constantly buying new things and big bar tabs can set you up to invest in assets like real estate or other businesses.
Income producing assets are an important tool, if you want to overcome the impact of economic volatility and inflation. …the more you know, you know?
The SVN Wilson Commercial Group has over 100 years combined experience advising clients in commercial real estate investment. While all investments have risk, it is our experience that a well positioned real estate asset has the ability to be a stable investment for the right investor. To learn more about this topic {inflation} or for more information about commercial real estate assets send an email to seth.asman@svn.com.
