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Using index funds to hedge against inflation

Posted by John T. Reed on

Looking through our dollar-denominated assets, I found an envelope of EE savings bonds. I need to take them to my local bank and cash them in. I have not done that yet, but seems straight forward.
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Imagine having to get them out of the safe deposit box then go to a bank and wait for a teller to help then filling out forms while prices in the stores around the bank were going up by the minute.
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We are also moving a bunch of dollar-denominated accounts to Schwab were my initial inclination is to put them into the Schwab 1000 Index Fund the the TCREX offered by Schwab. TC REX is the TIAA CREEF index fund.
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We also have a checking account there which has a debit card I use abroad because there is no fee for currency conversion. When I stick the Schwab debit card in an ATM in, say, Germany, it spits out euros and deducts the USD amount from my Schwab USD checking account.
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If you have a total of $750,000 at Schwab, you get three SWIFT wires per quarter for free. If you have $100,000 at Schwab, you get three domestic wires per quarter for free.
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You can transfer assets like index funds from your current broker to Schwab without incurring selling commissions or gains taxes if Schwab also offers the same fund. For example, we can move my wife’s USSPX fund from USAA to Schwab without having to sell it. Schwab has also bought out USAA’s brokerage business but that is not happening until May. That is too long in an era when the federal government is doing all it can to trigger hyperinflation.

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