To build a portfolio that can withstand high inflation, I always recommend I bonds.
I bonds are indexed to inflation and will never go below 0%. Right now, they’re worth 9.62%.
Other inflation-beating options include Treasury Inflation-Protected Securities, commodities, and real estate.

Maybe you’ve noticed your grocery bill has gone up, or those plane tickets you’ve been eyeing have gotten a lot more expensive. If rising prices have been on your mind the past few months, you’re not alone: Inflation hit 8.5% in March, the fastest rise in over 40 years. 

Higher inflation means higher prices on just about everything, from food to gas to clothes. In fact, people are spending an average 10% more on groceries and 48% more on gas than they were just one year ago. 

Rising inflation also affects investors — any investment that isn’t earning over 8.5% is losing its purchasing power. While there are some signs that inflation seems to be slowing down, everyone should still take steps to prepare their money for high inflation, including their investment portfolio. 

As a financial planner, I believe in taking a proactive stance with your money, including building an investment portfolio that’s resilient. If you want to specifically take action and hedge against inflation, here’s my go-to option. 

Series I savings bonds — or I bonds — are a stable investment

Series I savings bonds are a low-risk federal savings bond that’s indexed to inflation. They’re specifically designed to protect your money from inflation — and the Treasury Department recently announced that I Bonds issued through the end of October will earn an annualized rate of 9.62% for six months. 

These bonds are safe places to park your money and help it avoid losing value due to inflation. Interest rates on these bonds are regularly adjusted for …read more

Source:: Business Insider


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