How To Inflation-Proof Your Investment Strategy

February 24, 2025

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By Holly Trantham

Even if you are living a blessedly social media-free lifestyle, you have probably noticed a trend over the past few years: life has gotten a lot more expensive. (Yes, even beyond the crazy-high egg prices that are starting to seem “normal.”) 2021-2022 saw the highest inflation rates since the early 80s, but it was all the more striking because it came after about a decade of very low inflation. We were used to prices being what they were — until the pandemic hit, and they weren’t.

The unfortunate reality is that this isn’t really an anomaly. We’re going to experience many, many more inflationary ebbs and flows in our lifetime, and while it’s ideal when policy changes can help mitigate it, it’s in our best interest to prepare for the inevitable. That means keeping a nimble budget and savings plan — but also making sure the bulk of your money is working harder than inflation.

That’s where investing comes in, but maybe not in the way that you think. As humans, it’s natural to respond reactively when we perceive something to change for the worse or put us in danger. Case in point: reacting to a market dip by selling off everything so you don’t risk losing it all. But this is an example of our gut instincts working against us, because likely the last thing you want to do, when it comes to inflation, is keep most of your money in cash.

We were so thrilled to produce this most recent video of ‘Ask The Planners’ with our friends at Edelman Financial Engines, because the planners are giving the level-headed advice we all need to hear when it comes to inflation: it’s inevitable, so how do you plan for it? While it’s so easy to get caught up in anxiety-inducing headlines about inflation, there are a few key things to keep in mind:

• Investing is a long game, and focusing on short-term market fluctuations is only going to be an exercise in frustration.

• Inflation could mean good things for your portfolio returns in the long run.

• We all have different levels of risk tolerance — but hoarding cash is a surefire way to not outpace inflation.

Whether you want to learn more about diversifying your portfolio to be more inflation-proof, or you want some peace of mind about keeping your money in the market during volatile periods, be sure to check out the full episode below!

Of course, I am here yet again to shoutout another Korean skincare product aka the most perfect facial sunscreen ever that not only doesn't leave any white cast, but has a high SPF and absorbs so fast and seamlessly into your skin, you wouldn't even realize you had any sunscreen on to begin with. The ​[Isntree] Hyaluronic Acid Watery Sun Gel​ has been my go-to sunscreen for the past year and my loyal daily companion. I even brought it to my recent trip to Cabo San Lucas (where it was close to 95 degrees every day) and it protected my skin extremely well!

I purchased a Kindle e-reader two years ago in an effort to slightly improve my habit of hoarding physical copies of books, that frankly I don't have enough shelf-space for and in my expanded effort to support NYC's local libraries, a haven for me as a child growing up here. I've been using the ​Libby app​, which has over thousands of ebooks and audiobooks available, and all you need is a library card! I have multiple cards on there for the NYPL, Queens, and Brooklyn Public Library and can switch in-between to find the books I want to borrow/put on hold. And while you can read directly from the Libby app, you could alternatively send ebooks to your Kindle, which is what I do. The importance of utilizing the resources of the public library system cannot be understated :)

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Welcome to our weekly series, Ask A Financial Advisor with Kellen Thayer of ​Advisor.com​! Dozens of members of the TFD community love and trust Advisor to help them on financial journeys. Get $500 off your first year with Advisor by signing up through TFD! ​Click here​ to take our short quiz and schedule a FREE consultation call with Advisor today and never make another financial decision alone!

Q: What is your opinion on saving hard cash rather than having a checking account?

A: While keeping a small amount of cash on hand for emergencies is wise, saving large sums in hard cash isn’t the best strategy. Inflation erodes the value of cash over time, meaning your purchasing power decreases. A high-yield savings account (HYSA) or money market account is a better alternative, offering security, liquidity, and some interest to help your money grow.

Having a checking account is also essential for managing day-to-day transactions and paying bills. Modern banking tools make it easy to track spending, automate savings, and access funds when needed. If you’re concerned about privacy or safety with banks, choose a reputable institution and keep your account secure with strong passwords and two-factor authentication.

Get $500 off your first year with Advisor by signing up through TFD! ​Click here​ to take our short quiz and schedule a FREE consultation call with Advisor today and never make another financial decision alone!

Advisor.com provides clients with a top notch advising team for a fixed, flat annual fee. Their team of advisors work for you, not commissions, and help you to achieve your smart financial goals through planning, investing, and more.

About Kellen Thayer

Kellen has dedicated his career to helping clients achieve their financial goals through comprehensive financial planning and wealth management. He holds an MBA with a concentration in Finance from the University of Pittsburgh. Before joining Advisor Wealth Management, Kellen worked as an investment advisor at Goldman Sachs partnering with clients with $25mm plus in investable assets and later advised high-net-worth clients at Raymond James. His expertise spans a wide range of financial strategies, always with a focus on empowering clients from all backgrounds to build and sustain their wealth.

🚨THIS WEEK! Join us for our February members-only workshop,Voting With Your Dollars: How To Create Economic Change! Join Kara Perez, friend of TFD and sustainable money expert on February 27th for this very important and timely event! This workshop will cover aligning your value with your spending in a world that often seems to have no good choices. We'll cover topics like ethical spending and investing, mutual aid, and vetting corporations. Join The Society at the $4.99 or up tier to register.

🎥 Our extremely timely February video essay, It's Not Left Or Right, It's Up Or Down, is a deep dive into why Americans are obsessed with rich people including how its taking over our government and impacting our day-to-day lives. It’s another banger! And a reminder that $4.99 and up members of the ​Society at TFD​ get an ad-free extended version! Join us in the live chat tomorrow at NOON over on YouTube for a lunchtime premiere.

🎙️We’re also excited to announce our next podcast capsule series, LOVE IS BLIND, BUT MONEY TALKS, premiering this Friday, February 28th! Holly will be joined by TFD’s Content & Production Manager (and overall amazing person), Alexa Claire, for this 5-part series. They’ll deep dive into Love Is Blind season 8 as well as previous seasons, who we adored, who we may need to warm up to, why money and political conversations should be featured more in (and out of!) the pods, and how the show has proven that love really isn’t blind. This podcast will be exclusively available for members of The Society at TFD Premium.

🎬And in company news, we’re thrilled to announce a brand-new YouTube series we’re ~producing~ with our friends at Edelman Financial Engines. The series, Ask The Planners, is exciting for us because it’s the first time we’re in producer-mode for a brand other than ourselves, and we’re thrilled to be working with them on it! With the new year in full swing, we know financial goals are top of mind. But are you setting yourself up properly? This series is packed with expert insights from their financial planners to help you build a solid financial future. New episodes drop every Thursday! We’d love if you would check it out.

✨Make sure to get your hands on our latest guidebook, Your Financial Emergency Plan. We put together this 15 page guidebook together to help you focus your energy on something practical and actionable during these chaotic times. As Holly states inside the guide, "taking care of each other starts with taking care of yourself. Hopefully, this guidebook gives you some of the tools to do just that." This is exclusively available for members of The Society Premium. Our next guidebook drops next week!

The Society at TFD is our members-only community with access available on both YouTube and Patreon. Joining The Society is the best way to directly support TFD! The Society offers the exact same things on both platforms, so choose whichever one you prefer!

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