Hello 

Inflation hit a 40 year high today.  This is a major asset protection threat.  In fact, it is a lot worse than it appears.  We haven’t seen anything like this since 1981 they are saying.  That’s a lie.  We have never seen anything like this.

After the 1981 inflation, the government substantially changed the formula for calculating inflation.  The government never wanted to admit to double-digit inflation again.  Today they came out and said that inflation is at 8.5%.   If you calculate inflation today using the 1981 formula, we are at over 16%.  In the history of the country, it has never been like this.

And yet, nobody seems too worried.  On March 10^th, Treasury Secretary Janet Yellen said, “Americans will likely see another year of ‘very uncomfortably high’ inflation.”  It was just a matter-of-fact statement.  That kind of blows the theory that “inflation is just transitory.”  The Federal Reserve has started to increase interest rates a little bit, but basically nothing is being done.  In fact, the noose continues to tighten around energy supply, food supply, and the supply chain. 

When Reagan took over after Carter, inflation was going big time.  The Fed Chief, Paul Volcker, hit the brakes hard and raised interest rates to break the back of inflation.  Kristy and I bought a house in November 1980 and got a smoking good deal at 11.5% interest.  Most of the bank loans were over 16%.

Today, real inflation rates are much higher than they were back then, and the big action of the Fed is to raise interest rates by a half percent interest increase here and there someday maybe.

You had better take inflation seriously, because it is going to eat 25% of the wealth in the nation during the coming year.  This is an asset protection emergency. 

Real estate is one of your best hedges against inflation, but the tax aspects of real estate investing is also changing – and that’s not good for investors.  Other assets can help against the inflation problem, but what to do is not clear.

Gold and silver are the standard inflation hedge.  Stocks are an asset that protect against inflation.  Crypto may be, but we aren’t too sure of it yet.  You’ve got to move out of cash into an asset stance.  Food could be an excellent asset to have.  I wish I had bought my half a cow last year.  The President openly stated a couple of weeks ago that we would have food shortages in the US.

Ben Rucker, former IRS special auditor/agent and I are holding an “emergency” boot camp for two days May 13 and 14.  It is a virtual event 8:30 am – 5 pm MST each day.  We will look at advanced asset protection techniques and taxes in today’s environment.  Ben and I have just completed a six hour audio course on real estate taxation, so I am sure that real estate taxation will be discussed.

It’s amazing how just a little tweak in your small business or real estate investing will make a huge difference in how much money you spend.  If April 15^th is painful for you, you definitely need to attend the boot camp.  We keep the group to under 15 couples, so you can break in and ask questions any time as we go along.  We’ve had to go to virtual events since COVID-19, but they work if everyone participates, and they are a lot cheaper to attend and less hassle than traveling.

We haven’t advertised this event, and it’s already filling up.  Register now and get the Early Bird Discount (nearly 1/3^rdoff).  Register by April 19, and you’ll get a free copy of my new $29.99 ebook, “Ten Mistakes People Make with an IRS Audit.”  It will substantially cut your audit chances.

When you register, Ben will look over your 2021 taxes for free and give you a report.  Then we’ll know where you need help, and we can customize our boot camp to your needs.