Optimal Finance Daily - Financial Independence and Money Advice 3222: Four Ways to Fight Inflation by Sean Mullaney on Savvy Tax Planning and Leveraging Low-Interest Debt
Jul 23, 2025
Explore four clever strategies to combat inflation, including wise tax planning and harnessing low-interest debt. Discover how to maximize travel rewards while making spending choices that alleviate future costs. The discussion emphasizes the importance of intentional financial planning, particularly for food and healthcare expenses. A unique three-bucket approach to retirement savings offers insights into optimizing financial assets without getting trapped by pre-tax accounts. It’s all about making today’s decisions work for tomorrow’s financial health.
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Tax Planning to Combat Inflation
- Use Roth and Health Savings Accounts to shield future growth from taxation, including inflation-related growth.
- Balance traditional and Roth accounts to reduce tax impact of future inflation.
Mortgage as Inflation Hedge
- Sarah and Mike have a 30-year $400,000 mortgage at 2.9% fixed rate.
- By paying only required payments, they use devalued future dollars, benefiting from inflation.
Maximize Travel Rewards
- Use travel rewards and sign-up bonuses to pay for flights and hotels, avoiding cash spending.
- Spend points sooner as reward values can be devalued by airlines or hotels.