` Ed Butowsky | Financial Analyst, Managing Partner, Chapwood Investment

 

How To Inflation Proof Your Portfolio

How To Inflation Proof Your Portfolio

Ed Butowsky, managing director at Chapwood Capital Investment Management LLC, joins Gerri Willis on Fox Business’ Covering Your Assets to discuss how investors can inflation-proof their portfolios amidst rising inflation around the corner.

I discussed how inflation is a very misquoted number. On average, a consumer experiences inflation that is about 5.5% higher than what the Consumer Price Index (CPI) reports. The government has made multiple changes in the way inflation is calculated over the past 30 years. Not surprisingly, each change in methodology has had the effect of lowering inflation rates. Unfortunately, every year the cost of living continues to rise for consumers. This factor is unquestionably the largest problem investors will encounter while planning for and entering retirement.

Maintaining and growing purchasing power is the foremost goal for investors. To merely hold the same level of purchasing power from your investments, your portfolio must return at least 7-8% every year. What does this mean? When you invest in government bonds, money market, and CDs, you are continuously losing purchasing power once inflation and taxes have been subtracted. If you were to roll 6-month CDs since 1970, after tax and government inflation you would have lost on average 2.1% purchasing power per year.

To inflation-proof your portfolio, you should incorporate low-correlating equities and commodities, which will undoubtedly appreciate over time. Diamonds for example have not appreciated as much as gold and silver, but are a safe vehicle that will continue to increase in value.

Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.

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How To Inflation Proof Your Portfolio

on Feb 28, 2011 in Fox Business, Media Center by Ed Butowsky | No Comments »
How To Inflation Proof Your Portfolio Ed Butowsky, managing director at Chapwood Capital Investment Management LLC, joins Gerri Willis on Fox Business’ Covering Your Assets to discuss how investors can inflation-proof their portfolios amidst rising inflation around the corner. I discussed how inflation is a very misquoted number. On average, a consumer experiences inflation that...

How Should You Invest Amidst An Exploding Middle East?

on Feb 28, 2011 in Fox Business, Media Center by Ed Butowsky | No Comments »
How Should You Invest Amidst An Exploding Middle East? Ed Butowsky, Managing Partner at Chapwood Capital Investment Management LLC, joins Varney & Co. on Fox Business News to discuss strategies for protecting your portfolio during political instability in the Middle-East. With the current unrest in the Middle-East and rising oil prices, there has been a lot of concern among investors about the...

Egypt’s Central Bank Sells $1.1 Billion In Treasury Bills

on Feb 15, 2011 in Fox News, Media Center by Ed Butowsky | No Comments »
Egypt's Central Bank Sells $1.1 Billion In Treasury Bills Ed Butowsky, managing director at Chapwood Capital Investment Management LLC, joins Fox News to examine the recent activity of the Egyptian Central Bank selling off over a billion dollars of treasury bills after Hosni Mubarak’s recent resignation. Sunday marked the first day back to business in Egypt following the fall of Hosni Mubarak. ...

Money & Marriage

on Feb 11, 2011 in Articles, Financial Advisor Blog, Media Center by Ed Butowsky | 1 Comment »
Money & Marriage   Divorce can be summed up in one word “devastating.” Putting aside the emotional distress, often times divorce takes a unaccountable toll on you financially. Divorce is not only the separating of a family, it is the separating of finances. Overnight many of your bills for staples such as electricity, cable TV and phones double since they...

Growing Fears About State & City Municipal Bonds

on Feb 10, 2011 in Fox Business, Media Center by Ed Butowsky | No Comments »
Growing Fears About State & City Municipal Bonds Ed Butowsky, managing director at Chapwood Capital Investment Management LLC, joins Varney & Co. on Fox Business to examine the municipal bond market and whether it’s worth investing in now. The current municipal bond crisis is the engaging topic of the congressional hearings that occurred on Wednesday on Capitol Hill, which in addition to...

About Ed

Ed Butowsky is a nationally-recognized expert in investment management. Butowsky has been in the financial services industry for over 25 years. He was previously a Senior Vice President at Morgan Stanley and a Managing Director ... More »

Contact

Ed Butowsky, Managing Partner
Chapwood Capital Investment Management, LLC
Website: www.chapwoodinvestments.com
Email: ed@chapwoodinvestments.com
Phone: (972) 865-2225