How to beat inflation?

I'm writing this from the overnight ferry from Helsinki to Stockholm and will be relaxing for the next week in this part of the north Europe (Stockholm, Tallinn and Helsinki). This is kind of retirement life I'm working and heading into: travelling around the world while still doing what I like most: investing, trading and writing regardless where I'm. ✈🌇⛱

So today let me talk about something related, one of the most vicious killers of your wealth for your retirment: inflation! I’m sure you have already felt in your daily life that inflation is on the rise. I think it will probably rise a lot more in the years to come. Although the manipulated CPI is still trying to convince us that the inflation is just around 2% at the moment, I think the real inflation for our expenses is way higher than that. After all, I’m paying more and more each passing day for my daily expenses. Tell me what magic you have if you are not!

So a big question for all of us is how we can fight with the fast rising inflation moving forward. Leaving the money in the bank will definitely not save you from inflation. You will only become much poorer with losing purchasing power if you do so, believe me! Of course, there is no golden standard how to fight inflation as different people may have different strategies. Personally I have two major strategies working well for me: investing in quality dividend growth stocks with reinvestment (DRIP) and “save” money in the high yield tax-free cash value growing life insurance that is not stock market-dependent. I firmly believe these two will benefit me tremendously in the long run.

Today, let me share with you one think-out-of-box idea to fight against inflation: owing farmland. Here is a good report on a research why farmland is the best way to hedge inflation:  Not in every year, certainly, but over time, no investment offers the correlation with inflation that farmland does—not the stock market, not the bond market, not even gold. Although I’m not a farmer, intuitively I think it makes sense as not only the farmland itself may increase in value over time, more importantly the products it produces will be priced withy adjustment per the current monetary value. So owing farmland is a good way to save the value of your money. But obviously it is not practical for most of us to go out buying farmland. It is easy to buy but it will be a big challenge how to maintain its productivity. Fortunately I have found a way to own farmland easily with just one click. Yes, via a fund called Gladstone Land (LAND). LAND owns more than 67,000 acres of U.S. farmland (nearly 80 farms in 9 states) worth $558 million and they produce a wide variety of crops, well diversified. It is structured as a real estate investment trust ("REIT"). As such it is legally required to pay out at least 90% of their net earnings in the form of dividends. So usually REITs pay higher dividends. LAND is paying dividends on a monthly basis, a great feature for DRIP, and is paying 4.5% at the current price. The beauty of buying LAND now is that it is trading below its underlying value, i.e. it is about 10% discounted from its NAV, a good bargain for me! One great benefit to own LAND is that you are basically sharing the same interest as its CEO, David Gladstone, as he is a large shareholder and he definitely wants to see its dividend keep growing. Here is what he said in the recent earnings call: 

• We recently raised the dividend again... Over the past 40 months, we raised the dividend 10 times...
• Our goal is to continue to increase the dividend at a rate that outpaces inflation. As you know, I'm a large shareholder and I'm definitely liking dividend increases, and even if it's only a small amount or a quarterly change.
• Since 2013, we've made 63 consecutive monthly distributions to stockholders. It's [about $3.51 per share] total distributions.
• Paying distributions to shareholders is our paramount business. We are in essence a dividend-paying company and want to remain so.

Clear what you will get from LAND? A farmland company with an objective of not only just paying dividends but also growing dividends for shareholders. It’s a great music to my ears! And hope it is also for you guys!! On top of that, lining up with the CEO of the company for the same interest is generally a good thing for the safety of your investment.