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IRA Financial Blog

The Rise of Inflation – Episode 313

Adam Talks

In this episode of Adam Talks, IRA Financial’s Adam Bergman Esq. discusses the rise of inflation and the impact on your assets and your retirement accounts.

The rise of inflation is something Adam Bergman has been warning you about since the beginning of the COVID-19 pandemic. The government has pumped a lot of money into the economy, so inflation was inevitable. Add that to the president’s infrastructure bill, and it all amounts to higher prices across the nation. During this podcast, Adam will explain what is happening and how to protect your retirement savings.

The Rise of Inflation

You’ve seen it at the gas station, in the supermarket aisles, and even in your rent. The price of everything is going up – all thanks to the rise of inflation. Recent reports suggest that up to 50% of businesses will increase prices. Many businesses cannot find enough people to work, having to increase pay to have enough employees. That increase is being passed on to you – the consumer.

Of course, the number one reason has been the coronavirus. At the height of the pandemic, non-essential businesses were forced to close. The government started spending like crazy in order to help millions of Americans who could no longer work. The demand was much lower than the supply across almost all sectors of the country.

However, the country is about as close to normal as it can get right now. The supply has dried up and the demand is in full swing. That’s essentially the definition of inflation at its core.

Related: Rising Inflation Leads to Strong Demand for Alternative Investments

Why is it Happening?

Spending during the 2nd quarter this year has seen an increase of nearly 12% and that is expected to continue for the foreseeable future. More businesses are opening as millions of Americans get vaccinated. They have all this stimulus money to spend, whether it’s goods and services, or simply a nice meal out. Again, the shortage of workers have made it difficult to “get what you paid for.”

Further, energy prices are on the rise as well. Crude oil and natural gas are at a seven-year high. Heating oil has ballooned nearly 70% this year. Gas prices average about $3.00 across the nation, a full dollar more than a year ago.

One last interesting stat for you – 40% of American dollars have been printed in the last 12 months! The more money in circulation, the more inflation rears its ugly head! Add that to the fact that many Americans decided to speculate (think Bitcoin and GameStop) instead of paying off debt or saving.

Related: Debt & Saving Money in the United States

Protect Your Retirement Assets

A major concern here at IRA Financial is our clients’ retirement savings. As inflation rises, the value of many assets (and the dollar itself) is devalued. However, that’s not the case for all assets. There are classes you should look to during times of high inflation. Adam Bergman goes into detail, but here’s a quick primer:

Real Estate

Real estate has always been and probably will always be the number one alternative investment. Generally, it’s a safe bet, especially during inflation. Obviously, there are housing crashes, but they are few and far between. Everyone needs a place to live and work. Plus, when inflation is around, you can raise rent to keep up.

Read More: Real Estate the Best Hedge Against Inflation?

Precious Metals

Generally, when inflation hits, some assets tend to rise. One of those is precious metals. The supply of metals is scarce and has maintained its value through the years. This is especially true for gold, silver and platinum. Just remember to not hold it personally with retirement funds. It should be stored in the possession of a bank or other financial institution.


While cryptos are a relatively new asset class, it seems to be attracting a lot of attention. Bitcoin, the king of cryptos, is once again approaching record highs (around $60,000 as of this writing). There’s no historical date to look at to see how it will do with inflation. However, it has been proven that cryptos are not going anywhere. It may be worth a small gamble, so long as you understand the volatility.


Treasury Inflation-Protected Securities, or TIPS, is a safe alternative to nontraditional assets. They are bonds that are more expensive than conventional bonds. The upside is that the principle and interest rates go up during times of inflation. The drawback of TIPS is when inflation is not as high as expected since these bonds will end up losing value.

Did you know that you can also invest in private businesses with a Self-Directed IRA?


As we have foreseen, the rise of inflation is upon us! Everyday necessities are on the rise and may be for some time. However, there are things you can do with your retirement savings to prepare yourself for inflation. As usual, this information is for educational purposes. Before making any investments, please contact your financial advisor to come up with a plan that works for you.

Thanks for listening, and don’t forget to check out all our episodes on our SoundCloud page, and right here on the IRA Financial blog. See you next week!


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