How to Protect Your Money From High Inflation

Inflation is the number one wealth destroyer. $1 million in the year 2000, is now worth $745,824.62 in 2009. The u.s. dollar has been losing value rapidly. If you want to protect your wealth from high inflation, then here's how you can do just that.

Difficulty: Easy

Instructions

1. 

   Precious metals- Invest in precious metals like gold, sliver and platinum. These precious metals are a hedge against inflation. You should at least keep 20% of your wealth invested in precious metals.

2. 

   Oil- when inflation rise, then oil prices usually rise. If you want to cash in on the big oil boom, then buy stocks of companies that invest in oil. If you have more than $10,000 to invest, then you can invest in oil wells.

3. 

   Go global- invest in other countries that has a strong economy. The u.s. dollar might fall in value, but there might be currencies in other countries that's stronger. You can also lower your risk by diversifying your wealth globally.

4. 

   Stock market- Buy defensive stocks that pay dividends. Most stocks that pay dividends are stocks of companies that are making great profit. Defensive stocks are stocks that do well in bad times. If you want to receive dividends, then you should consider investing in defensive stocks.

5. 

   Buy tip bonds- These are bonds that do good when inflation rises. These are the only bonds that don't go down in times of high inflation. The best way to buy tip bonds is through a bond fund.

Tips & Warnings

• Don't put all your eggs in one basket.