FACT: Every year, the dollar gets weaker by about 3 to 4%. If the above statement doesn't scare you, then you are amongst the elite of investors and wage earners that know that certain investments are IMMUNE to inflation... including your WAGE EARNING POTENTIAL. Yes - You read that right. The education that you worked hard to achieve is actually a GREAT combatant of inflation, because the amount you are paid at work tends to keep up with inflation. Some corporations cite statistics like "Oh, the amount we are paying has doubled in the past 20 years for similar skill workers." Well guess what. They're actually paying you LESS if you factor in inflation and the fact that purchasing power was a lot greater back then. One of the best way to beat inflation is to own real estate. This is not just something I tout about on whotrade blogs for fun. If you think about it, the population is only going to expand, and people are always going to need a place to live. However, building houses assumes LABOR costs, and the people that build and design the houses are being paid AS PER the dollar's purchasing power at the time of their paycheck being issued. Keeping $100k in the form of cash sitting in your basement means you will lose about 4k of it every year due to inflation. Keeping $100k in the form of real estate means that you are able to leverage the net worth by borrowing at a low interest rate from the bank while having your tenants pay off the debt for you... AND ... you benefit from tax deductions ... AND ... here's the best part... you benefit from appreciation of the property. So if you still think the 1% has the most to lose from inflation, think again. Only misinformed 1% lose money from inflation (those that keep a chunk in their savings) while the informed will benefit by keeping their net worth in the form of assets that will appreciate over time and BEAT inflation. Oh... and if you think that bonds can beat inflation... think again ;) they come out just about even. Surprise of the century, eh!