281: Former Fed President Warns Easy Money Will Bring Big Consequences for Investors w/ Tom Hoenig

Inflation can be a detriment to any early retirement plan. At first, you may think you only need a certain amount of money to retire, and maybe you’re adjusting for inflation when you do these calculations. But what happens when inflation runs more than triple the average or crosses into double-digit numbers. How does your investment strategy change? How does your “dream retirement” come true when it costs ten percent more than you originally accounted for? These are all questions that average Americans are asking themselves: when can I retire? Can I retire? How can I afford food or gas or pay my bills? Although we can’t solely blame high inflation on the Federal Reserve, we can see how their policies lead to the situation we’re in now. Someone who stood up against the policies of quantitative easing and massive stimulus packages, is former president of the Federal Reserve Bank of Kansas City, Tom Hoenig.  Tom was in favor of quantitative easing back at the start of the great recession, but as this power to pump more money into the economy started to get abused, he rallied against the choice of the fed. Today, Mindy and Scott use this episode to ask Tom the hard-hitting questions that average investors want answered so they can make the best financial moves possible while still building wealth.  In This Episode We Cover The rampant inflation of the 1980s and how it affects Fed policy to this day Quantitative easing explained and how it artificially inflates asset prices How asset values and price inflation go hand in hand  The goal of the Federal Reserve and how many of their policies have backfired  Whether or not the 4% rule still stands true in an inflationary environment  What a “good” unemployment rate looks like and how it maps the health of the economy How investors can prepare to take advantage of times of economic uncertainty and high inflation  And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Scott's Instagram Mindy's Twitter Apply to Be a Guest on The Money Show Podcast Talent Search! What Every Investor Should Understand About Inflation How the Unemployment Rate Affects Us All (Yes, Even the Employed) The Fed’s Doomsday Prophet Has a Dire Warning About Where We’re Headed Tom Hoenig on Wikipedia Check the full show notes here: https://biggerpockets.com/blog/money-281 Learn more about your ad choices. Visit megaphone.fm/adchoices