An old tale is told of inflation so high that a farmer had
to push a wheel barrow of money to the nearest store in order to buy a loaf of
bread. Finding he couldn’t take the
wheel barrow into the market, he left it for a minute to enter and look for the
bread. Ready to pay, he hurried outside
for his money only to find that someone had dumped the useless inflated money
on the road and stolen his wheel barrow.
Amusing? Thought provoking?
As of March 2012 the U. S. inflation rate was reported
as 2.7%. That figure, however, omits
food and gasoline, two major necessities.
Anyone who pumps gas or buys groceries is well aware of the rapid escalation
of those prices yet government calculations of the inflation rate do not
include them. If they are included in
the mix, the U. S.
inflation rate today is close to 7%. And
most financial managers and advisers predict rapid, astronomical inflation by
late 2013 or early 2014. (Source: Dan
Celia, financial manager for over 30 years, heard six days a week on AFR Talk, www.afr.net)
Suggestion: Meet with
your financial adviser/planner NOW to get his or her opinion and advice so that
you can prepare for this financial challenge.
And don’t forget to adjust your fees regularly, at least annually, to
stay ahead of the inflation curve.
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