Four ways to store value as inflation erodes your cash

If you find yourself cash-rich and inflation-poor, here are four ways to store its value.

With the latest inflation gauge from Statistics Canada running at an annual rate of 7.7 per cent — the highest since 1983 — the loonies that Canadians had been accumulating in record amounts during the pandemic are eroding. 

And so are the loonies in their investment portfolios as they struggle to generate returns that keep up with the cost of living. As an indicator of how much cash could be spoiling in retirement nest-eggs, the Investment Funds Institute of Canada (IFIC) reported a net $6.4 billion flowed out of mutual funds in May.

That doesn’t take into account the billions of cash dollars remaining in mutual funds with high cash weightings.