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Inflation and Mosquitoes – what do these two things have in common? Mosquitoes, as we know all too well, are those pesky, little bugs that bite and cause skin irritation. They are hard to see and they can even cause a lot of damage.
To put it simply, inflation is a gradual rise in the price of goods and services. Over a given period of time, inflation reduces the purchasing power of your money.
In the long run, inflation can have a devastating impact on your investments. Similarly to a mosquito, inflation is that pesky thing that takes a bite out of your portfolio every year. If we can’t stay ahead of inflation, your run the serious risk of running out of money. That’s the real threat to your portfolio.
It is important to make sure that however you invest, you are staying ahead of the rising costs of inflation.