Hi guys, and welcome to the Money podcast!
When I was born back in 1955, the median house price was around $11,000. Today, it's about $330,000.
When I got my learner's license in 1970, the median price of a new car was $3,500. Today? $41,000.
When my father was born, the average annual household income was $3,300. Today it's about $70,000.
These are all examples of inflation; the erosion of the purchasing power of the dollar. Ignore it at your peril, especially if you're anywhere near retirement age, since these are the years your income will likely rise less than prices will.
We tend to think of inflation as consistent, but it's not. Sometimes inflation is low; sometimes prices actually drop year to year.
But these days, inflation is rising faster than it has in years; in some cases, decades. So, what's an investor to do?
That's what this week's "Money!" podcast is about. We're going to try to figure out if the inflation we're now experiencing is transitory, or if it's here to stay. And if we are entering a period of high inflation, we're going to talk about what you can do to fight back.
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