Having a comfortable amount of your money in a savings account is certainly a good idea. After all, you never know when you might need quick access to some cash to cover a medical emergency or other personal crisis. Even if you have a substantial amount of money in a retirement account such as a 401(k), there are generally high financial penalties for withdrawing that money prematurely, which makes that course of action an unattractive option for funding unexpected life events.
However, if you keep the majority of your wealth tied up in a savings account, you're essentially losing money over time. In most cases, the interest you earn on the money in your savings account is less than the rate of inflation. In other words, the purchasing power of the money you keep in a savings account is constantly decreasing. To protect the value of your wealth against inflation, it's a good idea to look into some alternative investments.
Investing some of your savings in rare coins is a great way to protect your wealth against inflation. Unlike some trading cards and other pop culture memorabilia, rare coins aren't a fad—there's an established market of collectors that has been in place for decades. That means your collection of rare coins will likely hold its value regardless of the whims of the future economy. In fact, professional numismatist Timothy O'Fallon expects the value of rare coins to drastically increase over the next decade as an increasing number of people seek out alternative ways to invest their wealth.
If you're not a seasoned coin collector, you should commission the help of a professional coin-grading service before investing a substantial portion of your wealth in rare coins. They'll be able to tell you the true value of coins before you purchase them as well as the potential future value. That way you'll get the best return on your investment if you decide to sell your collection years down the road.
Gold has been valued by societies across the globe for centuries, and gold remains valuable today in virtually every culture. Unlike paper money, the value of gold isn't tied to any specific nation. If the American economy undergoes a recession that leads to excessive inflation, your collection of gold will likely hold its value much better than your cash savings because it will still be highly desirable in other nations.
Investing in gold can also protect your wealth against inflation. If the American dollar undergoes a period of excessive inflation, the value of the money in your savings account will be directly affected. However, your collection of gold may uphold its value if you exchange it in a nation that isn't undergoing hyperinflation.
Buying a car as a future investment may seem counterintuitive. After all, the value of most new cars drops substantially the second you drive them off the dealer's lot. However, cars that are considered classics dramatically appreciate in value over time. In fact, there are a multitude of classic American cars that are now valued at millions of dollars despite the fact that they could be bought for several thousand dollars when they were originally released.
The automotive market is poised to change drastically in the coming decades with the rise of self-driving cars and electric motors. Some analysts predict that over a third of new cars produced by 2040 will be electric vehicles. That means that classic American cars with high-powered gasoline engines will be an even rarer collector's item than they are now. If you buy a classic car now, it will potentially be worth far more to nostalgic enthusiasts in the coming decades as internal combustion engines are increasingly phased out.