“The Bedouins have an old saying that goes: ‘Once the camel’s nose is in your tent, the rest of the camel can’t be far behind.’ Folks, the camel’s nose is in your tent. Maybe you didn’t even know you were camping. But I’m speaking metaphorically. That camel is inflation. His nose is in your tent. And he’s going to eat your wallet.” – Sean Brodrick, Weiss Ratings

Sometimes you need a crazy picture to get the point or make something memorable. My deceased boss used the “you get to keep the monkey on your back” to tell me the problem I had was mine and I could solve it. He wasn’t going to take my problem and make it his. Mom used to give me a gift of Hershey’s Kisses for my birthday. It symbolized and reminded us of a story when I was a little boy. It was also a reminder of her love for me.

Sean Brodrick, of Weiss Ratings, is also good at grabbing attention. Each time I review an investment statement for a friend, I often find a common denominator. Their financial “adviser” has given them a “safe” portfolio that really is very unsafe. It provides a false sense of security and ignores the camel that is poking his nose into the tent. That camel is inflation. Inflation is now up to 2.9% as of July.

If you are buying bonds, or bond funds, do yourself a favor. Make note of the expense ratio, and the financial adviser’s fees and the yield of the bond or the fund. After you do the math, and subtract the camel called inflation, I believe you will learn that your “safe” investment is not very safe at all. The camel has entered the tent. He is eating your wallet.

It gets worse. The dollars you spent on the mutual fund front end load, expense ratio and the financial adviser’s fees no longer compound to your advantage. They are no longer in your wallet.

Weiss Ratings link: https://weissratings.com/articles/a-camel-is-going-to-eat-your-wallet

The Silent Killer: INFLATION