🎵 Inflation is stealing from you. Here is how to fight back.

If you had $100,000 sitting in cash in January 2020, its purchasing power by early 2026 was roughly equivalent to $80,000. That is what inflation does. It does not take your money. It takes what your money can buy. And if your investments are not keeping pace with inflation, you are getting poorer even when your account balance goes up.

Inflation has averaged about 3% per year over the long run, but recent years have seen spikes well above that. At 3% inflation, prices double roughly every 24 years. At 4%, they double every 18 years. For someone in their 40s or 50s planning a 30-year retirement, inflation is not a side issue. It is the main event.

The good news is that some investments naturally protect against inflation, and others that feel safe are actually the most vulnerable.

Stocks, especially dividend growers. Companies that can raise prices alongside inflation tend to protect shareholders over time. Broad index funds already capture this. You do not need to chase special "inflation stocks."

TIPS (Treasury Inflation-Protected Securities). These government bonds adjust their principal value based on the Consumer Price Index. When inflation rises, your principal goes up. The yield is modest, but the inflation protection is guaranteed. TIPS make sense as a portion of your bond allocation, not as your entire portfolio.

I-Bonds. Savings bonds issued by the Treasury with a fixed rate plus an inflation adjustment that resets every six months. The current composite rate is competitive with high-yield savings, and the interest is exempt from state and local taxes. The catch: you are limited to $10,000 per person per year in electronic purchases, and you cannot cash them for 12 months.

Real estate. Rental income and property values tend to track inflation over time. This can be direct ownership or through REITs. Not suggesting you go all in, but real estate exposure adds diversification and an inflation hedge.

What does NOT protect you: long-term nominal bonds, cash under the mattress, and fixed annuities without inflation riders. These all lose purchasing power when inflation sticks around.

You cannot avoid inflation, but you can invest in a way that makes it matter less. A diversified portfolio with equity exposure, some TIPS or I-Bonds, and real estate exposure is the boring, effective answer. Boring works.

The Mixtape Millionaire Team

Mixtape Millionaire is for informational purposes only and does not constitute financial advice. Always consult a qualified financial professional before making investment decisions.