Friday, April 1, 2011

Ten Ways To Beat Inflation - Forbes

Great chart comparing real estate investment vs other options in terms of beating inflation.

TRATEGYANNUAL
EXPENSES,
BASIS POINTS1
HAZARDTAX TREATMENT2
FOREIGN EXCHANGE376COSTSBAD
GOLD ETF426NEW SUPPLIESTOLERABLE
HOME520REAL ESTATE CRASHVERY GOOD
JUNK BOND ETF640DEFAULTSDREADFUL
MORTGAGE720DEFLATIONGOOD
REAL RETURN FUND873DEFLATIONTOLERABLE
RESOURCE STOCKS0BUSINESS RISKTOLERABLE
SOCIAL SECURITY POSTPONEMENT0CONGRESSIONAL DOUBLE CROSSGOOD
TIPS0RISING REAL RATESBAD
TREASURY LADDER0HYPERINFLATIONBAD

1ANNUAL HOLDING COST PLUS A TENTH OF ROUND-TRIP TRANSACTION COST. ASSUMES TREASURYS BOUGHT AT AUCTION. A BASIS POINT IS 0.01%.2IF ASSET IS OUTSIDE A TAX-SHELTERED ACCOUNT. 3COST SHOWN IS FOR POWERSHARES BEARISH DOLLAR ETF. 4ISHARES GOLD TRUST. 5REALTOR AND CLOSING COSTS ONLY, APPLIED TO A PORTION OF HYPOTHETICAL SALES PRICE. 6SPDR HIGH YIELD. 7CLOSING COSTS ONLY. 8FIDELITY STRATEGIC REAL RETURN.

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