One Way to Fight Inflation

Well, based on the emails I’ve been getting and conversations I’ve been having with my clients lately, inflation is seemingly on everyone’s minds.

And hitting everyone’s wallets.

Are I-Bonds The Answer to Inflation?

With this in mind, I’ve had a few of you ask me about “I-Bonds” aka Series “I” Savings bonds…

Go here to learn more and get the details, if you’re interested.

From now until April 2022, you can purchase I-Bonds that pay an interest rate of 7.12%.

And with inflation rearing its head, that sounds pretty tempting, doesn’t it?

I-Bonds: What You Need to Know

But before you “back the truck up” and load up on I-Bonds, a few points you should be aware of:

• You can only purchase $10,000 of I-Bonds per calendar year

• However, since we’re close to a New Year, you could purchase $10,000 now and another $10,000 once January rolls around

• These are “savings” bonds. It’s in the name. This means that while they accrue interest, they don’t make interest payments to you. So these aren’t a great solution if you’re looking to generate income.

• That mouth-watering 7.12% rate I mentioned above is only good through April 2022. Interest rates on I-Bonds are adjusted every 6 months. So after April, the rate could go up or down.

• Speaking of the interest rate, I-Bonds actually have two interest rates: a fixed rate and an inflation rate. They’re designed to generally keep up with inflation. Their fixed rate is currently zero, FYI.

There’s more to I-Bonds than I want to get into today, but since a few of you have asked, I did want to share some highlights.

If this prompts additional questions, get in touch and let me know.

Inflation’s Birthplace

Oh, and speaking of inflation, you might find this website worth a visit. It has some interesting graphs and visuals that depict what’s happened since we went off the gold standard. And inflation is only a piece of it…

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