Social Security and Inflation
by FinanceCookies - May 4th, 2009.Filed under: Investing and Opportunity, Savings and Habits. Tagged as: Inflation, investment, liquid cash.
So we all know that we are facing massive troubles with Social Security. We are paying into a system that we are not sure will still be around when we need it. This is because we are not simply paying into an account that we can tap into later on, but we are paying into someone else’s account. I wonder then if the government foresaw this when they instituted social security. I think the concept behind it is great because it helps out the older generations that have no income, but the problem is that our population has not been growing like it used to. In light of this I wonder what this means for us.
This could mean massive inflation. I’m not saying it will, but a lot of these struggles we’re facing could lead to massive inflation. With this in mind it is a good idea to get our wealth out of liquid cash and put it into something that will increase in value along with inflation. Real estate used to be the perfect answer and I believe it still is but really anything that is an investment, as long as it is not cash, is a good place to put your wealth.