How to reach an apt going against inflation
Inflation of the type currently experienced in Argentina is particularly hard to deal with.  Also, real estate prices in global cities such as Buenos Aires and even secondary cities have grown significantly.  There are no full solutions to this problem, but there are a few things that can really help.
Inflation protected securities (i-bonds or TIPS).   TIPS stands for Treasury Inflation Protected Securities. By very definition, they tend to protect your savings against inflation. They won't beat inflation, but will keep up with it. TIPS or iBonds have two parts. A fixed interest part and a variable interest portion which varies depending upon the current rates. The combined rate would match the inflation rate. They can be bought directly from the treasury (or from a broker or bank who might charge a commission) There are two industrial sectors with a recent history of raising revenue and profit faster than inflation: education and health care.  While there is indeed some political risk, my assumption is these sectors would continue to beat inflation even under a theoretical socialist President Bernie Sanders. There are several such sector funds available from popular low ER mutual fund companies; I don't believe this forum likes specific commercial investment touting so I decline to name specific ones. "The classic definition of inflation is ""too much money chasing too few goods."" Low rates and QE were intended to help revive a stalled economy, but unfortunately, demand has not risen, but rather, the velocity of money has dropped like a rock.  At some point, we will see the economy recover and the excess money in the system will need to be removed to avoid the inflation you suggest may occur. Of course, as rates rise to a more normal level, the price of all debt will adjust.  This question may not be on topic for this board, but if we avoid politics, and keep it close to PF, it might remain." $10k isn't really enough to make enough money to offset the extremely high risks in investing in options in this area. Taking risks is great, but a sure losing proposition isn't a risk -- it's a gamble. You're likely to get wiped out with leveraged options, since you don't have enough money to hedge your bets. Timing is critical... look at the swings in valuation in the stock market between the Bear Sterns and Lehman collapses in 2009. If you were highly leveraged in QQQQ that you bought in June 2009, you would have $0 in November. With $10k, I'd diversify into a mixture of foreign cash (maybe ETFs like FXF, FXC, FXY), emerging markets equities and commodities. Your goal should be to preserve investment value until buying opportunities for depressed assets come around.  Higher interest rates that come with inflation will be devastating to the US economy, so if I'm betting on high inflation, I want to wait for a 2009-like buying opportunity. Then you buy depressed non-cyclical equities with easy to predict cash flows like utilities (ConEd), food manufacturers (General Mills), consumer non-durables (P&G) and alcohol/tobacco. If they look solvent, buying commodity ETFs like the new Copper ETFs or interests in physical commodities like copper, timber, oil or other raw materials with intrinsic value are good too.  I personally don't like gold for this purpose because it doesn't have alot of industrial utility. Silver is a little better, but copper and oil are things with high intrinsic value that are always needed. As far as leverage goes, proceed with caution. What happens when you get high inflation? High cost of capital. Recessions are prolonged by less spending and wages being 'sticky' downward. My currency, the 'wallark', allows a company to pay its workers in it's own scrip instead of dollars which they can use to purchase its goods, thus reducing it's labor costs and allowing prices to fall faster. While scrip in the past purposely devalued to discourage hoarding, the wallark hold's it's purchasing power. The difference is, a worker can only use it to purchase their company's good *on the date the wallark was earned or before*.  In other words, each good is labeled with a date it was put on display for sale, if  a worker earns scrip on that same day, they can trade the scrip for that good, or any good that was on the shelves on that day it was earned *or before that date*. Any good that comes onto market after the date that particular wallark was earned cannot be purchased with that wallark(which is dated), and must be purchased either with dollars or with wallark that was earned on that good's date or after. This incentivizes spending without creating inflation, and allows costs to fall which helps businesses during rough economic times.  Please feel free to read it, and comment on my site! Any feedback is welcome! "So, what's your actual plan/strategy/suggestion to combat this, again?   Are you planning on buying physical gold, other precious metals (again, tangible--not paper), and buying &amp; investing in real estate?       This isn't a sarcastic question; I want to go down this hypothetical path in the thought experiment a bit further.       For example: for a US investor, could *part* of the strategy be to ""move to a state with no state income tax"" to preserve as much income as possible in order to invest that income in one of the target categories?     Is careful selection of primary residence (real estate) in a location most likely to appreciate part of the strategy?      Is moving your investment accounts offshore to a tax haven part of the strategy?" You can't get there from here.  This isn't the right data.  Consider the following five-year history:  2%, 16%, 32%, 14%, 1%.  That would give a 13% average annual return.  Now compare to -37%, 26%, 15%, 2%, 16%.  That would give a 4% average annual return.   Notice anything about those numbers?  Two of them are in both series.  This isn't an accident.  The first set of five numbers are actual stock market returns from the last five years while the latter five start three years earlier.  The critical thing is that five years of returns aren't enough.  You'd need to know not just how you can handle a bull market but how you do in a bear market as well.  Because there will be bear markets.   Also consider whether average annual returns are what you want.  Consider what actually happens in the second set of numbers:   But if you had had a steady 4% return, you would have had a total return of 21%, not the 8% that would have really happened.  The point being that calculating from averages gives misleading results.  This gets even worse if you remove money from your principal for living expenses every year.   The usual way to compensate for that is to do a 70% stock/30% bond mix (or 75%/25%) with five years of expenses in cash-equivalent savings.  With cash-equivalents, you won't even keep up with inflation.  The stock/bond mix might give you a 7% return after inflation.  So the five years of expenses are more and more problematic as your nest egg shrinks.  It's better to live off the interest if you can.  You don't know how long you'll live or how the market will do.   From there, it's just about how much risk you want to take.  A current nest egg of twenty times expenses might be enough, but thirty times would be better.  Since the 1970s, the stock market hasn't had a long bad patch relative to inflation.  Maybe you could squeak through with ten.  But if the 2020s are like the 1970s, you'd be in trouble. There is inflation, but it's hidden through various mechanisms. What do you call housing price increases and wage declines? What do you call the fed essentially paying down the inflation with free money and prices still pressuring upwards? I get the sense there is a great underlying pressure for inflation to burst out from the fed's free money pressure chamber. For all our sake, I really hope the pressure chamber holds or I'm totally wrong in the first place. "To begin with, bear in mind that over the time horizon you are talking about, the practical impact of inflation will be quite limited. Inflation for 2017 is forecast at 2.7%, and since you are talking about a bit less than all of 2017, and on average you'll be withdrawing your money halfway through, the overall impact will be <1.3% of your savings. You should consider whether the effort and risk involved in an alternative is worth a few hundred pounds. If you still want to beat inflation, the best suggestion I have is to look at peer-to-peer lending. That comes with some risk, but I think over the course of 1 year, it's quite limited. For example, Zopa is currently offering 3.1% on their ""Access"" product, and RateSetter are offering 2.9% on the ""Everyday"" product. Both of these are advertised as instant access, albeit with some caveats. These aren't FSCS-guaranteed bank deposits, and they do come with some risk. Firstly, although both RateSetter and Zopa have a significant level of provision against bad debt, it's always possible that this won't be enough and you'll lose some of your money. I think this is quite unlikely over a one-year time horizon, as there's no sign of trouble yet. Secondly, there's ""liquidity"" risk. Although the products are advertised as instant access, they are actually backed by longer-duration loans made to people who want to borrow money. For you to be able to cash out, someone else has to be there ready to take your place. Again, this is very likely to be possible in practice, but there's no absolute guarantee." The safest investment in the United States is Treasures. The Federal Reserve just increased the short term rate for the first time in about seven years. But the banks are under no obligation to increase the rate they pay. So you (or rather they) can loan money directly to the United States Government by buying Bills, Notes, or Bonds. To do this you set up an account with Treasury Direct. You print off a form (available at the website) and take the filled out form to the bank. At the bank their identity and citizenship will be verified and the bank will complete the form. The form is then mailed into Treasury Direct.  There are at least two investments you can make at Treasury Direct that guarantee a rate of return better than the inflation rate. They are I-series bonds and Treasury Inflation Protected Securities (TIPS). Personally, I prefer the I-series bonds to TIPS.  Here is a link to the Treasury Direct website for information on I-series bonds. this link takes you to information on TIPS.  Edit: To the best of my understanding, the Federal Reserve has no ability to set the rate for notes and bonds. It is my understanding that they can only directly control the overnight rate. Which is the rate the banks get for parking their money with the Fed overnight. I believe that the rates for longer term instruments are set by the market and are not mandated by the Fed (or anyone else in government). It is only by indirect influence that the Fed tries to change long term rates. You can look at TIPS (which have some inflation protection built in). Generally short term bonds are better than long if you expect rates to rise soon. Other ways that you can protect yourself are to choose higher yield corporate bonds instead of government bonds, or to use foreign bonds. There are plenty of bond funds like Templeton Global or ETFs that offer such features. Find one that will work for you. Gold is a risky and volatile investment. If you want an investment that's inflation-proof, you should buy index-linked government bonds in the currency that you plan to be spending the money in, assuming that government controls its own currency and has a good credit rating. Inflation is already impacting hard to reach places: Sakhalin, Yakutsk, and Kaliningrad (Russia's small enclave in the middle of Europe). While major metropolitan areas can easily deflect inflation, better distribution networks, major distributors, faster access to bureaucratic machinary, isolated regions are already fealing the impact of the sanctions. There are several local currency initiatives in the US list here.  Most are attempts to normalize a value as a living wage, or encourage local consumption networks.  If you are in the catchment region of one of these, see if you can get a grant or loan to get started (if you are willing to buy into the philosophy of the group such as a $10 minimum wage) m "Inflation means that the more money you create, the less it has value. To that I say, ""Meh.""   A funnier way of gaining wealth, which is the ultimate goal to stealing currency, would be to gain a great deal of money (through robbery or other means) then attempt to trigger a deflationary spiral while sitting on the cash. Sure it might be difficult, but I'm pretty sure the key is jacking up Fed interest rates and blowing up money printers."