ilmscore | The Ultimate “Inflation-Proof” Investment (EVEN with High Tariffs)

Predictions from this Video

Total: 8
Correct: 0
Incorrect: 0
Pending: 8
Prediction
Topic
Status
A $250k property purchased with 20% down, growing at a 1% real rate, is predicted to yield a 6.6% real return on the initial investment over 30 years.
"If we use that inflationadjusted 1% growth rate I just mentioned, that property would be worth about 337 grand in today's dollars, and that would yield you on the $50,000 you invested a 6.6% real return."
Real Estate Returns
Pending
A rental property currently generating $2000/month rent and $2000/month expenses (including a fixed $1000 mortgage) is predicted to generate $1890/month cash flow in 30 years, assuming rents keep pace with inflation.
"Well, if you just extrapolate the rate of inflation on that $2,000 per month in rent that you're generating today, your income would balloon to $5,780 per month... But that mortgage payment that was $1,000 today, 30 years from now is still $1,000... making your cash flow $1,890 per month. So, you've gone from a break even situation to a almost $2,000 per month cash flow even if rents only keep pace with inflation."
Real Estate Cash Flow
Pending
Long-term investment in bonds is predicted to yield an approximate 1% real return.
"But long-term, if you invest in bonds, the yield, the long-term real return is about 1%."
Bond Returns
Pending
Bonds are predicted not to be a great way to outperform inflation.
"it is not a great way to outperform inflation."
Bond Performance vs. Inflation
Pending
The stock market is predicted to offer a long-term average real return of 5-7%, significantly outperforming inflation and acting as a good inflation hedge.
"they say that the average real return, so adjusted for inflation, is about 6.4%. Again, people do this differently, so I'm just going to say 5 to 7%. So, overall, that means equities are a really good inflation hedge, and they actually beat inflation by quite a lot."
Stock Market Returns
Pending
Real estate is predicted to have a much higher annual chance of keeping pace with inflation due to its lower volatility compared to the stock market.
"in real estate, you have a much higher percent chance in a given year that you're going to keep pace with inflation."
Real Estate Volatility
Pending
Gold is predicted to not be as effective an inflation hedge as commonly believed.
"Gold is actually not as good an inflation hedge as most people think or as conventional wisdom says it is."
Gold Performance vs. Inflation
Pending
Managed buy-and-hold rental property real estate is predicted to be the best way to hedge and outperform inflation over the long run, for those willing to put in effort to maximize returns.
"If you want to maximize your returns and you're willing to put in a little bit of effort to manage your real estate portfolio, the math and the analysis shows that real estate is indeed the best way to hedge and outperform inflation over the long run."
Overall Best Inflation Hedge
Pending