As inflation continues to rise, many questions have arisen regarding best practices for safeguarding investments. This week on Grow Money Business, Grant takes a deep dive into bond investing in an inflationary market, and answers some important questions about Treasury Inflation-Protected Securities (TIPS) and I-bonds. Throughout the episode, Grant shares his thoughts on when they may be a good fit for your portfolio, as well as some important considerations and strategic approaches to bond investing.

Show Notes
04:07 Bond Investing – Grant explains the process of bond investing and the importance of allocating a portion of your portfolio to US government securities.

08:44 Treasury Inflation-Protected Securities – Grant discusses the similarities and distinctions between ordinary US government securities and treasury inflation-protected securities.

13:41 Interest Rate Risk – Grant explains why the value of TIPS are decreasing even though they are intended to protect investors against inflation.

21:26 I Bonds – Grant describes the structure of I-Bonds, and shares his thoughts on who is best suited to invest in them.

25:48 $10,000 Limitation – Grant shares a strategic approach on how to circumvent the $10,000 per year per person investment limit that the Treasury Direct website imposes.

29:00 Emergency Fund Cash – Grant explains why he does not recommend investing emergency fund cash in I bonds.

32:50 Borrowings – Grant describes how rising inflation affects borrowing and how to benefit from borrowing in inflationary times.

Resources
Treasury Direct: treasurydirect.gov/
Treasury Inflation-Protected Securities: wsj.com/market-data/bonds/tips
Treasury Inflation-Protected Securities: FAQs about TIPS: schwab.com/learn/story/treasury-inflation-protected-securities-faqs-about-tips…(read more)

LEARN MORE ABOUT: Treasury Inflation Protected Securities

REVEALED: Best Investment During Inflation

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