Gas prices are at record highs, weekly grocery bills have doubled, your summer vacation is considerably higher than years past…welcome to inflation. You may be thinking, “how can I invest in a time like this?” Sure, there has been a (very) steady rise of prices for goods and services for a while, but it doesn’t mean all is lost with your investment strategy. This is an opportunity to sit down and revisit your portfolio and perhaps revise your plan.

Do you still have your same comfortable job? Are you working less hours or have you been laid off all together? Is inflation putting you in a tight spot with your monthly budget or do you still feel safe with your choices? Do some research, speak with a financial advisor, and see if you should change your investment diversification based on your current situation.

TIPS: Treasury Inflation Protected Securities are bonds backed by the U.S. Federal Government. TIPS reflect the rise and fall of inflation which typically would “protect” you from inflation spikes over time. Interest is paid twice a year and at maturity (5, 10 or 30 years) you would be paid the adjusted or original principal whichever is greater.

Residential Real Estate is booming in 2022 and is an investment worth looking at during inflation. If buying a property to rent isn’t practical, or being a landlord isn’t appealing, consider investing in REIT’s (Real Estate Investment Trusts) or mutual funds that invest in REIT’s. Because real estate rents and values typically increase when prices do, REIT’s perform well in inflationary environments.

Cash and short-term bonds. While your cash can’t grow like other assets, it is more protected from rising interest rates when you keep in a CD or money market account. Similarly, short-term bonds aren’t as susceptible to losses from rising interest rates like long-term bonds are. They can also be easily reinvested.

Commodities typically rise in cost with inflation. Investing in agricultural products and other raw materials could be a good hedge against inflation. But buyer beware – prices for commodities also depend on supply and demand for the product – which makes them a riskier investment. There is a possibility for a high payday but also high losses.

Bitcoin & other NFT’s (Non-Fungible Tokens) are forms of digital currency which are decentralized. Like cash and commodities, crypto is a place to put cash in hopes that inflation won’t affect its value. It is riskier however since it isn’t value dropped in 2021 and its unreliable as an everyday currency.

While it doesn’t look like prices are going down anytime soon, there are ways to protect yourself financially. Take this as an opportunity to research and refine your investments. Always consult with your financial advisor before making any decisions on your investment portfolio.

The comments expressed and are for general information and not to be relied upon as financial advice. Please consult legal or tax professionals for specific information regarding your individual situation.