‘Dirty little secret’: Rand Paul revealed how the rich got even richer through US inflation — here's how to piggyback off their tactics
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
Inflation impacts everyone as it erodes the purchasing power of money. But perhaps not everyone is affected to the same degree and in the same way.
U.S. Senator Rand Paul recently claimed escalating price levels have had a disproportionate impact on blue-collar workers and this has got them leaning toward Republicans.
“The workers are for us because their wealth is being eroded, their dollar’s being eroded …,” he said in an interview with Fox Business, referencing auto workers on the assembly line.
Don't miss
Commercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here's how even ordinary investors can become the landlord of Walmart, Whole Foods or Kroger
Cost-of-living in America is still out of control — use these 3 'real assets' to protect your wealth today, no matter what the US Fed does or says
These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes. Here's how
Contrastingly, the wealthy experience a vastly different outcome.
Paul noted that “the very wealthy have gotten wealthier,” calling it “the dirty little secret of inflation.”
He isn't alone in noticing this trend. In January, the non-profit Oxfam reported that the world’s billionaires have become $3.3 trillion wealthier than they were in 2020, with their wealth increasing three times faster than that of inflation.
The reality is that billionaires have been able to grow their wealth faster than the pace of inflation through a combination of assets and strategic investments.
Here’s a look at some notable examples.
Equities
Billionaires strategically utilize stocks and equities as a key component of their investment portfolios. For some of the most famous billionaires, a substantial portion of their wealth is linked to the companies they founded or currently manage.
The Oxfam report highlighted how large firms were making oversized profits during inflationary times, noting, “148 of the world’s biggest corporations together raked in $1.8 trillion in total net profits in the year to June 2023, a 52% jump compared to average net profits in 2018-2021.”
The Oxfam also observed that share ownership “overwhelmingly benefits the richest,” with the top 1% owning 43% of all global financial assets.
But you don’t have to be in the billionaires’ club to access the stock market.
Interactive Brokers allows you to buy and sell stocks without any commission fees or minimum investment requirements], making it easier than ever to grow your wealth alongside the world’s financial elite.
Notably, IBKR Lite simplifies investing with unlimited free trades of U.S.-listed stocks and ETFs, and the ability to buy fractional shares, effectively flattening the learning curve for new investors.
Real estate
Real estate is a well-known hedge against inflation. As the price of raw materials and labor increases, new properties are more expensive to build, driving up the price of existing real estate.
Well-chosen properties can provide more than just price appreciation. Investors also get to earn a steady stream of rental income.
The S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index has surged 49% over the last five years.
Of course, that also means properties are costly, especially with elevated mortgage rates. But these days, you don’t need to buy a house to start investing in real estate.
RealtyMogul, an online real estate capital marketplace, offers the opportunity for individuals to participate in a wide range of commercial real estate investments, ranging from multi-family dwelling to industrial sites and medical buildings.
With over 185,000 registered users, the platform has facilitated funding for more than 375 investments, amassing a total capital raised of over $400 million.
Read more: Baby boomers bust': Robert Kiyosaki warns that older Americans will get crushed in the 'biggest bubble in history' — 3 shockproof assets for instant insurance now
For accredited investors who feel a tad more ambitious, there’s also First National Realty Partners, a platform that enables individual investors to invest in institutional-quality, grocery-anchored commercial real estate.
With a focus on essential needs-anchored properties, First National Realty Partners invests in stable assets that can provide long-term, predictable cash flow. Boasting an expanding portfolio of top brands, the platform works with national tenants such as CVS, Kroger, Walmart and Whole Foods.
A valuable third option
To safeguard against inflation, one may not want to overlook one asset that has helped people preserve wealth for thousands of years — gold.
Billionaire hedge fund manager Ray Dalio has called the yellow metal “timeless and universal.”
Gold is a popular hedge against inflation for a straightforward reason: They can’t be printed out of thin air like fiat money.
Amid surging inflation and geopolitical instability, gold prices have reached new heights, now standing at $2,338 per ounce. The most direct way to invest in precious metals is to own bullion.
Another way to invest in gold that also provides significant tax advantages is with a gold IRA through Goldco.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold. This makes them an attractive option for those seeking to ensure their retirement funds are well shielded against economic uncertainties.
What to read next
Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month
Jeff Bezos and Oprah Winfrey invest in this asset to keep their wealth safe — you may want to do the same in 2024
You don't need to invest like Warren Buffett to get rich — this simple technique tops his returns without taking on more risk
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
