The Hidden Tax ... Inflation

The hidden tax no one accounts for...

1
 min read

Inflation is something most people don't even think about. This is insane because Inflation plays a big role in finance. The United States' average inflation rate is 3.22%.

What does this mean? It means that the US Dollar depreciates on average 3.22%. Let's do some simple math. If you have $100,000 in cash, inflation loses you $3,222 a year. After 5 years, you've lost over $16,110 which is over 16% of your total cash amount.

Over the course of 100 years, that same $100,000 would depreciate to $3,480.

If you are not, at minimum, keeping up with inflation through investments, your cash is completely trash.

Yes, I said it. Cash is trash.

What isn't trash is cash flow!