The Dangers of Inflation and How to Protect Yourself

This is the biggest mistake investors make before getting Financial Advice. Let's fix this today.
Financial Planning
I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about our services, please follow this link: go.novawm.com/getintouch
Inflation can be hard to get your head around, but you need to because it's a hugely powerful force. Although inflation may seem like a small effect from year to year, it compounds over time, resulting in massive losses of purchasing power.
But it gets worse; As we get older, we start to rely on different goods and services, like health care, and the prices of these goods inflate at a much higher rate than 2%.
The solution is simple: only hold enough cash as is absolutely necessary. The rest needs to be invested.
But most people don't fully understand inflation, and even if they do, they don't know where they can invest with confidence.
Resources to check out:
Bank of England Price Changes
www.bankofengland.co.uk/knowl...
US Money Supply
tradingeconomics.com/united-s...
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - James is not responsible for investment actions taken by viewers. Please seek out a regulated advisor if you require assistance (whilst James is a financial adviser, he does not provide advice through this KZbin Channel, which is not affiliated with his employer).
James Shack™ property of James Shackell
Copyright © James Shackell 2021. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.identified as the author of this channel and any video published on it.
00:00 Intro
01:14 What is Inflation
04:50 Infinite Money (Money Printing)
11:00 Why inflation is good
13:45 How inflation affects you & how to protect yourself

[@JamesShack]

Please let me know your questions below, there’s a lot to unpack in this one!

[@jonathanharris9661]

10/10 Great content. I would appreciate a video for anyone in their mid 50’s (like me!) trying to work out the right balance between investment & consolidation, risk versus stability & reward as we edge towards retirement

[@navinamin806]

10

[@fly1ngf1sh]

To me, this video begs the question: If I have a sum of money that is earmarked for a need in

[@joannastacey215]

10/10 from me. I really enjoy your videos. They're easy to understand for the layman, but technical enough for the amateur investor like myself. please keep them coming!

[@thescand]

James mate, we need a house tour more than anything. The backdrops to these videos are so lovely, who designed your place? Kudos to them! 👏🏼 (10/10.)

[@JamesShack]

Haha I’ll get round to it!

[@belgianboy14]

10/10 - I've always wondered why governments desired a small amount of inflation and you've answered it in a simple, concise way! Appreciate all the videos

[@julianfp1952]

A bit late here, I only recently discovered your channel and it is excellent, but I'll rate this one 8 out of 10. I loved the explanation of inflation, particularly the money supply aspect of it. My reason for knocking off a couple of points though is that I felt slightly short changed on the second how-to-protect-yourself part that I think could have benefitted from another 3 or 4 minutes of time devoted to it because after all that earlier explanation the punch line was not much more than "cash bad, equities good". I was left with a few questions such as what about index linked gilts? Having shown the potentially catastrophic effects on inflation on bond returns why are they still discussed so much as a component of a private investor's portfolio? Is Bitcoin really an inflation hedge given its crazy volatility? Maybe some examples of how equities fared during periods of really high inflation e.g. the 1970s. Essentially I would have liked a bit more meat and broader discussion in that final "what do I do about it?" section even if it added 5 minutes to the length of the video, or maybe you could have gone into a lot more depth and split the video into two parts which I think would have worked really well.

[@bartkuk1]

This is gem! I love your content and you have an excellent way of delivering the information, very engaging and clear to understand with brilliant articulation. I do appreciate your time and effort. Thanks a bunch 🙏🏼🙌🏻

[@ritajames7797]

10/10 James! Excellent use of simple clear examples with graphs that show how over the years, stocks have risen and market crashes have affected stock prices, how inflation works and how to plan by taking more rather than fewer risks. Judicious risk taking can be more profitable than most other choices of investment and certainly superior to leaving money in the bank.

[@maryhaucke-davis6695]

This is the best explanation of basic economics I’ve ever seen. Bravo! Keep ‘‘em coming!

[@PeterCostello-vn8pg]

10/10 from me James. I find you clear and very articulate. You pitch at the right level for me anyway. I am just tuning in to investing and fit that 50 something category. Found your comment about “the investment2 does not stop when you retire” eye-opening. Keep up the channel, lots of us are really helped by it.

[@helenfortgang7841]

10/10 - You always explain things so clearly, and I will definitley make better, more informed decisions as a result. And recognise the bad ones I've made over the years!

[@herbrottner2486]

9.9 of 10. Clear and unbiased communication without esoteric jargon or overly nuanced phraseology that is often part of economic and investment related video/material. Well done!

[@lamkaz810]

10/10 I'm a new viewer/new investor and am learning loads! Keep 'am coming, James ⭐🤗⭐

[@RandellJohn]

10/10 James, I really liked your simplified explanation of the relationship between quantitive easing and GDP and it's possible effect on inflation. Great videos, I'm learning so much from you.

[@tws989]

10! Best finance KZbin channel I have come across. It’s great that this is UK focused!

[@JamesShack]

Cheers Tom!

[@neilrelton1641]

Just found your channel great that someone is actually sharing their knowledge much more interesting advice than tv money programmes ,thank you 10 out of 10 from me

[@nickr3115]

Great advice (10/10). Having listened to lots of other advisors on line, I find yours the clearest and most useful. Thanks!

[@RichardOzanne]

11/10. This channel has taught me so much that I had no idea about previously. If only KZbin had been around 40 years ago and guys like you had been posting stuff like this then! I could have retired a long time ago.

[@jamessouthgate4892]

Absolute 10/10. All very articulated and when you touch on a subject I'd like to hear more on, you tend to have another video that delves into it. I've been looking for this type of content from a UK channel for a while. Keep em coming.

[@JamesShack]

Glad you enjoyed it!

[@lukecollins7731]

Brilliant video mate. I'm a new investor and have been watching all your videos for further information and its been a huge help. definitely a big prospect on the KZbin scene. keep ups the good work James, your videos are brilliant. I'm 25 and just started investing and currently sorting through my pensions, things id of never of done if id of not stumbled across these videos!!

[@thebikerepairshopformby]

10/10 highly informative presentation. You really explain this subject in a way that is easy to understand. You have give me a lot to think about and also made me realise that we have made a few investment mistakes in the last 10 years

[@davidlowton9359]

James, I’m so glad KZbin recommended your channel. Your content and delivery is second to none. Thanks for the details and layman’s terms you deliver. It’s a 10 from Len!

[@JamesShack]

Glad you liked it!

[@eoinculligan8228]

10/10. You made it so simple to understand something complex that I have pretty much no knowledge of

[@ravpatel3118]

10/10 you smashed it. I've seen a few of your videos now, and i would say your break down, method and summary comes across perfectly. keep it up!

[@stingrea1108]

10/10, watch your channel all the time, always explained clearly, good graphics and easy to follow.

[@seanfennon8033]

10/10 really well explained, clear and concise and simply illustrated.

[@stephenbarnett6139]

10 out of 10. Fantastically simplified - a lot of people need to see and hear this. I will be sharing widely. Well done :-)

[@alexsandrasilva8410]

10/10 you are a great educator, really learning with your videos. Maths and finances never came easy to me, and your explanation on inflation/deflation was so helpful so I am glad I found your channel coz it makes me even more interested in learning about all this and investing more also.

[@erhaboriE]

This is so informative without being overcomplicated. Great video, really digging your channel

[@JamesShack]

Thanks for this!

[@stuartbatte6741]

10/10, Great explanations. The thing that I always like is you back up the narrative with facts. The graphics really demonstrate the key points in a visual quantifiable format.

[@iammaster5556]

9/10 - I don’t like rating anything 10/10 as it leaves no room for improvement and no one is perfect! Very informative video and channel. Keep up the good work!

[@lilumayer5902]

10/10 very simple and all clear. I like examples plus you show different options to people rather than talking only about one type of investment.

[@Paul-kg7jq]

9.5/10. Well done James. Interesting content made comprehensible with a lively presentation style 👍

[@spartacusptolemaida]

that's def a 10/10 mate! been researching investing tips for a while now and your content is gold! you've no idea how much I appreciate your tips and advices, and the best thing? they're free!

[@hypermap]

10/10 James - Super clear and articulate as always - I've racked my brains but unfortunately can't see any potential areas of improvement - actually that's a very good thing - keep posting your clear insights. I'm sure your helping a lot of people out there review their decision making re: their finances. I like the way you keep returning to fundamentals and move from these to conclude with the logic behind practical decisions people can think about making in relation to today's financial environment and their personal goals and investment timeframe.

[@hypermap]

Oh thought of one! If giving an example from the USA, please give / mention the corresponding example from the UK - or leave out the US examples altogether and just focus on the UK :) I suspect you want your target audience to include those across the pond and broadly international viewers - of course it's your channel do what you want - so it's not really a suggestion to improve your channel more a request.

[@lorrainestclair4256]

10/10 I really enjoy the simplicity of how you explain inflation. You make it make sense.

[@carloscambon3877]

9/10 Good content. Then only drawback is probably on my side, as I get lost a bit into the depths of how it all works as far as debts, inflation, printing money... What a complicated system we live in.

[@markeveritt3138]

9.5- I must admit I never give anyone 100% for anything so don't take offence. You explain it well and as if I'm a 5 year old but not in a condescending way. I find your videos really informative and at a time when I plan to retire in the next 12 months is helping me confirm that my strategy is making sense. Thankyou for doing that. You have a number of videos I need to get through and look forward to that.

[@CR-wu2cf]

the video is an excellent call out for people who are just starting in finance, I'm giving this video an 8+ because it's certainly easy to understand for everyone regardless of the level of experience.

[@samandchar2004]

10 for me, mainly because I’ve tried to explain all this to my missus for years and got nowhere, but she seems to be listening to you!

[@JamesShack]

Haha nice!

[@tonybristol6561]

10 out of 10 well explained just wish I was told this year’s ago!

[@JamesShack]

Glad it's helped!

[@russguy4432]

10/10 from me! How could it not be?! James, you give so much valuable information and explain it in layman's terms that the majority of people can then understand. Fear is born from ignorance but once you take the time to learn about a subject matter and acquire the tools to support/protect yourself by following certain rules, then there should no longer be fear but enlightenment! Thank you! Dare I say it, the same principles apply to educating yourself about viruses and pandemics too!

[@JamesShack]

Cheers Russ, that's such a nice comment and I completely agree. Learning to learn is the best skill you can ever acquire. If you learn that you can apply it to any domain.

[@peterbattle2116]

I think your videos are very good James. Straightforward and simple to understand. 10/10.

[@nickpoole9859]

10/10 - absolutely fantastic video. I have always known that you need to find return-seeking investments that match or outpace inflation, but this was fantastically useful in explaining why.

[@Trifusion1]

9/10 - This is perhaps not a comment on this video but on your whole channel, all the videos feel a little same-y. On this video I think it’s one of your best, as always your simple graphs are very effective and condense complex ideas effectively. Your voice is easy to listen to and that smooth background music makes me feel somehow comfortable when you get into the swing of it. Interesting to hear you touch on mortgages and also on asset classes other than ETFs. I would love to hear more from you on both of those.

[@JamesShack]

Thank you for this detail. By same-y do you mean the topics or the style? You've made me reflect on the content i've pushed out and it is all very much focused around index investing, and using keywords that have worked before. I think this stems from the fact that i have such a low cadence, with just one video every two weeks or one a week if i can really push it. And i feel like I need every video to help me reach out there and engage with new audiences, hence the use of the same keywords. I've become a slave to the algorithm... But I am trying to free up more time to focus on this, which should allow me to up the cadence and give me more confidence to branch out and try new things. I do intend on covering all areas of investing and financial planning. Thank you again, this was exactly the kind of feedback i was looking for !

[@l.patrick3155]

Straight talk; all plain & simple. After watching 3 videos, no brainer...subscribed. I'm here for the education, James. Thank you!

[@varunvkumta]

10/10 Such a great way to explain such complex concepts in easy to understand and relatable ways. Keep them coming - I’m learning a lot with every video!

[@JamesShack]

That’s great to hear!

[@celestebrant]

10/10, I subscribe to you because I look forward and enjoy all the videos you make. Investing no longer became daunting because of your videos. I feel like you are trustworthy which is a priority for me when it comes to learning about finance. I also like the images/graphs/text you use, your presentation of information is very clear and stylistically consistent which is appealing to see and also I feel is quite professional 😁 Also in another video of yours, you implied (or explicitly said) that you are now engaged, so a massive congratulations to you both! 🎉 👏🏻 ✨

[@JamesShack]

Haha yes thank you! Although we've had to put our wedding back to next year because of Covid. But we'll get there in the end!

[@adaham5]

10/10 for me. I have very little prior knowledge of this world and your clear, calm and informative presentation makes learning much easier and enjoyable. Thank you.

[@JamesShack]

Cheers Adam, that’s good to hear!

[@gk_knight]

10/10 - binging your videos like crazy last few days. You’re a star !

[@longchung898]

Although I think I know the effect of inflation but having it spell out the way you do is very helpful and for that you deserve a 10 rating for it.

[@roblowry9457]

9/10 good stuff - really enjoying the content. I'm a teacher 5 years from retirement so my investing is to supplement a safe teacher DB pension so I can be a bit more adventurous with it. This is not a market hugely catered for on KZbin in the UK so anything you can do here is welcome.

[@williamdutton8303]

Thanks James. I really like your explanations, pace and style. 10/10 from me

[@chrisstanton-jones6808]

10/10 well done - complicated issues explained really easily!

[@Pieter2360]

10/10: excellent explanation of a concept that seems to be misunderstood by many.

[@josephbrennan370]

9/10. Enjoyed the video. It takes me back to economics lessons in school. Glad to see the Quantitative easing definition hasn't changed. Areas for improvement: Maybe use some kind of stock video footage while speaking for a long period of time but that isn't essential. Also maybe use demand and supply diagrams for explaining future topics, or maybe I am just too used to them.

[@Itspetespective]

10!! I finally understand inflation

[@warrickingham2855]

10/10 Some difficult concepts clearly explained, especially quantitative easing and the risk of not investing

[@nameussparticus]

Great video James!! People should be taught this stuff in school!!

[@stevec.2702]

Information content 10/10. Video presentation editing etc 9/10. Overall well worth watching and gets my recommendation.

[@antonioarantes8493]

10/10. Really great video, explanations and charts to support the message. Keep up with the good work James!

[@JamesShack]

Cheers Antonio!

[@robertpearce-bailey5576]

10. Extremely clear info and thorough. Keep up the great work

[@JamesShack]

Cheers Rob, will do!

[@templent9431]

10/10 - we're constantly surrounded by our "friends" the banks and their messages. Guess why they bombard us with their very expensive marketing. This simplified explanation and your previous videos is having a radical effect on my views. Thank you.

[@Ferdinand208]

10/10 good information. Answered all my questions. Nice voice with good sound. And no loud noises or loud music. More please 🙏👍

[@bobcondra8589]

Very simple and factual explanation of inflation - EXCELLENT- 5-19-24

[@johnwilliams8869]

Great video. Concise, and clearly presented. Liked your graphs and clear diction. 10/10.

[@mariconor242]

This was your best video I’ve seen. Gets a 10 from me James 👍

[@user-tn2fe1ul1n]

10/10 Excellent video as always. Your channel is going to go far. Ive shared vids. Keep them coming!

[@JamesShack]

Cheers Bobby!

[@boydsargeant7496]

Thanks James, always love them. 10/10.

[@azevedoproductions]

Hi James, really appreciate your content. I would rate this video at 5/10 because up to 13:44 you mostly provided general information that I already knew (you could have gotten the point across in less time). I would say that, on average your videos are above 9/10.

[@jamesc328]

10/10 I have a 40K Cash ISA, and already have safety cash fund, so moving to Vanguard, after watching this video. Keep up the great videos, I have learned so much from your videos.

[@paulmcbride7432]

Hi James, great channel and great video. For me it’s a 8/10 and here’s why: 10/10 is pretty is an unlikely score due to viewers opinions, experiences, values and beliefs being different therefore subjective. On this video in particular, I would have like to have seen segmented links in between each cut that provides an example of why inflation occurs, what the indicators are I.e., how the media reports this and what to take from that as an investor? That said - I really enjoy you channel, it’s very clean, easily digestible, succinct and topical.

[@andre7021]

10/10 excellent and concise explanation of a very complex subject. The infographics definitely help too 🍻

[@MrFritzybabe]

10/10. Mini economics lesson and how it affects people. Whats not to like? More of these technically detailed videos please. (If my mrs says it's boring then I know it's good!)

[@stephenwalsh3708]

10 out of 10 James. Excellently explained, there is lots of tall in some financial press about rising inflation, I remember mortgage rates at 15%. Lets hope it won't rise so much. Keep these videos coming. Steve Walsh.

[@JamesShack]

Hi Steve, inflation will come but I think only to about 2 maybe 3%. The big difference this time is that we have an ageing population which is a big deflationary force so this should help to keep inflation in check. The press have to sell those papers (or ads) though!

[@maheshpatel5913]

10/10 - Very informative. I wish i had paid attention a long time ago. I will certainly have to think about keeping money in the bank.

[@chqshaitan1]

Loved this video, you went into sufficient depth explaining quantitive easing and inflation, without making it too complex. Video quality wise 10 out of 10, i have to say

[@JamesShack]

Thanks Raymond!

[@NigerianinLondon]

10/10. Very easy to follow and educative!

[@thethatch1102]

10/10 really understand inflation, bonds and the way it all works now. Thanks James!

[@JYCrazy1]

10/10 - really love the explanations, it makes all this seem really logical!

[@jamespawsey6427]

9.8/10 for me. I have recently come accross your channel and I think your videos are spot on in terms of knowledge gained per video minute. I would prefer more technical depth here and there but this is why I am going to watch more videos from you. Excellent content!

[@JamesShack]

Thanks and welcome to the channel!

[@ianfutube]

10/10 James. I wish I would have had access to your channel 30 years ago. Obviously I didn’t but I am going to share with my daughters. Thanks for the great content 👍

[@JamesShack]

Great stuff, you’re welcome!

[@NanaFirewings]

10/10 you make it so easy to understand!

[@JamesShack]

Great, that’s the idea!

[@kellybaldwin3079]

10/10. Love the content and detailed explanations. Some of the best presented and informative videos i have seen. Top level work James. Thanks .

[@JamesShack]

Wow, thanks!

[@u187146]

Great video. I work in the savings and investment industry and the information you are providing is light years ahead of most Asset Managers who are getting fixated with regulatory matters or evidencing their ESG credentials and ensuring they are rewarded with very comfortable retirements, rather than concentrating on ensuring their clients have a very comfortable retirement. Can I suggest a few ideas. 1. Contrast Open ended Funds vs. Investment Trusts, performance and the impact of fees over time. 2. How much is enough to retire. Different for everyone but there is a lot of ignorance of when enough is enough to retire, hence why few choose to retire until they are dragged kicking and screaming from their PAYE salaries. 3. Comparing the cost of living in different countries as possible retirement designations and how a GBP retirement income can go a lot further outside the UK.

[@sunshinejones8643]

Your delivery is great! TV presenting really suits you. Keep up the good job!

[@JamesShack]

Thank you!

[@bobstacey9311]

10/10 Excellent presentation really gets the message across in terms a layman can comprehend

[@Claudia-yd3dd]

8/10, because you want to get better. In fact: 10/10 because I’m really thankful for your content. Greetings from Germany 🇩🇪 and thank you!

[@Boixxx]

10/10, very informative and not too technical that I couldn't follow it. 👍

[@JamesShack]

That’s great to hear!

[@jamiefarrell4425]

It’s 10/10 from me. I’ve learnt so much from watching your videos. Your presentation style is engaging and what could be tricky topics are clearly explained using language anyone could understand. Keep them coming! I do have my own FA but watching your videos have reassured me that my wife and I are on the right path to early retirement 😀

[@JamesShack]

Wow, thank you!

[@richardmoore4194]

9.5/10 great video some more content for those 1 or 2 years away from retirement , drawdown v take lump sum, managing emergency fund etc but seriously good content well explained

[@alisonp8640]

Hi James! Absolutley 10/10!! I prefer images so the infographics are superb and really helpful to digest what you are saying. One idea I had for a video - how to use Appen. I watched your video re: how to get to £25k and Prolific, Appen etc and whilst I have got set up on Prolific, I I struggling with Appen and can't find any decent videos on KZbin to help me, so just a thought! Thanks so much for the vids!! Great stuff!!

[@JamesShack]

Right ok, well i haven't actually used it myself but dhec out r/beermoney on reddit. They discuss that thing a lot

[@marianelavelasquez9696]

You are amazing - such an eloquent delivery of contents - very informative video:)

[@TobyNewbatt]

Great video James. Inspired me to start my own channel and hopefully add my bit to the UK financial investment KZbin scene!

[@Ian61432]

10 - I have never, ever seen these concepts explained so clearly. Incredible! Love the visual maths and graphs with your superb explanations. Astonishing seeing the money pumped into the economy worldwide in 2020 too - I can't begin to wonder what this will mean down the line.

[@JamesShack]

We will find out !

[@gerry2345]

I like this vid. deserves a safe 8.Good insight. Need even more information on how to protect yourself.

[@slimfreddyk]

definitely a 10....best video explaining inflation and why we invest for the long term

[@JamesShack]

Haha cheers!

[@philipmorris9154]

Well explained and thank you for your education 10 out of 10!!!

[@LisaCamp]

Your a very good communicator, much better then the average guy. Keep it up please. I hang on every word. I applaud your work...👏👏👏👏👏👏

[@JamesShack]

Thank you Lisa !!

[@michaeli160954]

Great video , very clear explanation. 10/10. Thank you

[@bcrowcroft]

James I am new to this channel and enjoy listening. I rate this video at 8 out of 10 but this is only because I don’t fully appreciate the complexity of all the variables. I have subscribed because I retired last July and have a large lump sum to invest. I invested in lifestyle Vanguard product which is why your video came to my attention. As this is so complex I think it is probably easy for someone with great wealth to manipulate how to gain more value for themselves at the expense of the masses. I’ll keep watching to improve my understanding. Great videos by the way

[@JamesShack]

Cheers Brian, if you're not 100% confident on your decision please feel free to email me [e-mail] and I can give you some guidance.

[@edinthephilippines]

10 James, thanks for the value you provide. 👍👍👍

[@JamesShack]

No problem 👍