teacher bankruptcy

Teachers should be seriously considering adding gold to their investment portfolio like those that they can purchase at the Money Metals Exchange to prepare for tougher times ahead. Why? The data from both the United States Bureau of Labor and Statistics (BLS) and the National Education Association (NEA) show that between years 2000 to 2017, teacher pay across the country dipped by as much as 15 percent due to inflation. Converting a portion of their pay into gold is one simple way for teachers to protect themselves against this trend, which experts say will likely to continue for the next few years.

For the past 17 years, the rise in the cost of living, health care, insurance, higher education, and retirement has been severely disproportionate to the increase in the average teacher’s wages. According to an expert economist from the University of California, Berkeley, after adjustments for inflation, teachers today earn around $30 less each week than they used to. While teachers in states such as Alaska and California where the wages are the highest may not feel it yet, teachers from other states are already feeling the pinch. Recent teacher protests in states like Oklahoma, Kentucky, and Arizona are proof that things are just worse. A question many may ask themselves is can teachers do something to insulate their earnings from the effects of inflation?

The Lowdown on Inflation

A simple definition of inflation is that it’s a steady increase in the price of basic goods and services. As an example, a dozen eggs that cost $1.30 now, may cost $2 in a year or so because of inflation. While there are instances where short-term inflation is good for the economy as a whole, a sustained inflationary environment will eventually cause a nation’s currency to lose its purchasing power. The government or some companies may impose an increase in wages to help employees cope with the rising prices. However, the increase in wages often can’t keep up with the rate of inflation.

The situation is even more serious for employees who don’t receive a pay increase at all. As inflation continues, such employees are essentially taking a pay cut as their income level remains stuck at a certain point as prices rise. What compounds the situation further is that even if employees have rainy-day cash set aside, their savings will likewise lose their purchasing power in inflationary conditions.

How Teachers Can Prepare and Protect Themselves from Inflation

Instead of watching their earnings and the fruits of their labor lose value slowly, teachers can instead convert them in to “real assets.” Among the examples of real assets include oil, real estate, and stocks or bonds. These types of assets are “real” in that they have an intrinsic value. The best type of real assets for employees like teachers where they can begin diversifying their portfolio would be precious metals like gold.

Like other real assets, precious metals have inherent value that is immune to the same influences that cause inflation. In fact, the price of precious metals like gold increases during inflation. This is because inflation encourages investors to turn to acquire real assets as a hedge. This demand will drive the prices of real assets like gold skyward.

Purchasing physical gold, such as gold Krugerrand coins is one way of converting your earnings into a more stable liquid asset. Owning and holding gold or any other precious metal is also one way of having extra cash on the side. The price of precious metals tends to increase in time, so instead of losing value if you store your earnings in a bank, your stock of precious metals becomes more valuable the longer you hold onto them.

The Advantage of Investing in Precious Metals

One main advantage of investing in precious metals like gold over other real assets is that you can convert your gold to cash easily at any time. You can also start accumulating gold gradually at a pace that you are most comfortable without making radical lifestyle changes. It also makes sense to invest in actual physical gold and store it yourself, rather than own it via a certificate or as part of a trust. Having them in your possession eliminates your risk of bankruptcy or defaulting on them. Among the physical precious metals that you can start acquiring almost immediately, including coins, bars, and ingots.

The primary caveat when purchasing physical precious metals is to ensure that you have a secure means of storing them. You should also ensure that you only purchase from authorized, established and reputable sellers minimize the risk of fraud. As with any type of investment, you need to research about investing in precious metals. Once you gain a better understanding of the process of stockpiling precious metals and on trading them, you can start building up your stockpile.