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Rising living costs have been a persistent concern for Americans. President Donald Trump says the blame lies squarely with his predecessor — and argues his administration is turning things around.
“We inherited the highest prices ever and we’re bringing them down,” Trump said at a recent rally in Mount Pocono, Pennsylvania (1).
“We’re getting inflation — we’re crushing it,” he added. “I mean, the only thing that is really going up big, it’s called the stock market and your 401(k).”
There’s some evidence to support parts of that claim. Inflation has cooled meaningfully from its peak. The U.S. consumer price index rose 3.0% year over year in September 2025, well below the 9.1% surge recorded in June 2022 (2).
Still, prices continue to rise — and inflation remains above the Federal Reserve’s 2% target. Critics also note that inflation has picked up (3) from April’s 2.3% reading (4), when Trump’s sweeping tariffs were first announced.
Where Trump’s argument is strongest is in the markets.
The benchmark S&P 500 is up roughly 14% year to date, while the tech-heavy Nasdaq Composite has surged about 17%. Those gains have flowed through to retirement accounts. According to Fidelity, the average 401(k) balance climbed 9% from a year ago to $144,400 in Q3 of 2025 — an all-time high (5).
Trump has also pointed to paychecks.
“You’re getting lower prices, bigger paychecks … you’re getting much higher wages,” he said (1).
Wages are indeed rising, though perhaps not at the pace implied. According to the Bureau of Labor Statistics, Americans’ wages and salaries increased 3.6% over the 12 months ending in September 2025 — roughly keeping pace with inflation, but not dramatically outpacing it (6).
Meanwhile, the Federal Reserve recently cut its benchmark interest rate again, though policymakers cautioned the inflation fight isn’t over. In its latest statement, the Federal Open Market Committee said inflation “has moved up since earlier in the year and remains somewhat elevated (7).”
The good news? History shows that investors don’t have to rely on perfect policy or ideal economic conditions to protect their purchasing power. Across cycles — and regardless of who occupies the White House — savvy investors have found ways to shield themselves from inflation’s bite.
Here’s a look at three of them.
When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold. Its appeal is simple: Unlike fiat currencies, the yellow metal can’t be printed at will by central banks.
Gold is also considered the ultimate safe haven. It’s not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Over the past twelve months, the price of the precious metal has surged by more than 50%.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly emphasized gold’s importance in building a resilient portfolio.
“People don’t have, typically, an adequate amount of gold in their portfolio,” Dalio told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”
JPMorgan CEO Jamie Dimon has also struck a bullish tone, suggesting that in the current environment, gold could “easily” rise to $10,000 an ounce.
For those looking to capitalize on gold’s potential while also securing tax advantages, one option is to open a gold IRA with the help of Goldco.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.
Real estate has also proven to be a powerful hedge. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped 45%, reflecting strong demand and limited housing supply (8).
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is Mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
You can sign up for an account and then browse available properties here.
Trump’s claim that “the only thing that is really going up big, it’s called the stock market and your 401(k)” may sound like a quip. Still, many market experts agree that stocks can play a role in protecting portfolios during periods of inflation.
Morgan Stanley chief investment officer Mike Wilson recently told Reuters that in the current environment, “high-quality equities and gold are the best hedges (9).”
Stocks can serve as an inflation hedge when companies are able to raise prices to offset rising costs, allowing their revenues and earnings to grow alongside inflation.
Of course, not all stocks are the same. For investors who don’t want the pressure of correctly picking winners and losers, there’s a simpler way to gain exposure to high-quality companies — one endorsed by legendary investor Warren Buffett.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated (10).
This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.
If you want to capitalize on this consistency, you could work with SoFi to invest in ETFs like an S&P 500 index fund. You can also pick out individual stocks yourself if you feel confident in making market moves.
The platform is designed to help you learn investing as you go, with real-time investing news, curated content and the data you need to make smart decisions about the stocks that matter most to you. You can even create a personal watch list based on your interests.
This DIY approach allows you to invest with no commission fees in the stocks you believe in, or ETFs and index funds. Plus, for a limited time, you can get up to $3,000 in stock when you fund a new account.
Trump’s claim about “higher wages” leaves out a large segment of the population: retirees who are no longer earning a paycheck. And for them, inflation can hit especially hard.
As you get closer to retirement, every dollar starts to matter more. Rising health care costs, uncertain markets and fixed incomes can make it harder to stretch your savings — especially if you’re trying to plan for decades ahead.
You might want to consider joining senior-focused organizations like AARP for discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.
As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but they can also help you make informed financial and health decisions. AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.
Sign up with AARP today and get 25% off your first year.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
@WhiteHouse (1); U.S. Bureau of Labor Statistics (2), (6); CNBC (3), (10); NBC News (4); Fidelity (5); Federal Reserve (7); S&P Global (8); Reuters (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.