One Way to Stay Ahead of Inflation: Qualified Opportunity Funds

QOFs based in areas with a long history of successful oil and gas production in the U.S. and with their advantage of deferring capital gains taxes (and in some cases eliminating them) could be a winning hedge for your investment portfolio.

Growing plants are perched on top of stacks of coins.
(Image credit: Getty Images)

2020 won’t be remembered fondly by many people, for obvious reasons. The onset of the COVID pandemic was devastating to the economy, necessitating a reversal of monetary policy. The Fed slashed interest rates to zero, as it had a dozen years earlier in response to the collapse of the housing market and the Great Recession in 2008. The rate of inflation, which had drifted to 2.5% by the beginning of 2020, dropped almost to zero as well, stabilizing between 1.2% and 1.4% for the remainder of the year.

It's uncertain if and when interest rates will drop as low again. However, experts agree that it won't happen any time soon.

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Daniel Goodwin
Chief Investment Strategist, Provident Wealth Advisors

Daniel Goodwin is a Kiplinger's contributor on various financial planning topics and has also been featured in U.S. News and World Report, FOX 26 News, Business Management Daily and BankRate Inc. He is the author of the book Live Smart - Retire Rich and is the Masterclass Instructor of a 1031 DST Masterclass at Daniel regularly gives back to his community by serving as a mentor at the Sam Houston State University College of Business. He is the Chief Investment Strategist at Provident Wealth Advisors, a Registered Investment Advisory firm in The Woodlands, Texas. Daniel's professional licenses include Series 65, 6, 63 and 22. Daniel’s gift is making the complex simple and encouraging families to take actionable steps today to pursue their financial goals of tomorrow.