The Risk Free Way To Make Money During Inflation | I Bonds Explained

by | Mar 13, 2023 | Invest During Inflation | 6 comments




Inflation is at an all-time high and with no clear end in sight. This video discusses a RISK-FREE way to make inflation work for you.

I Bonds are the best opportunity to grow your money right now. From May 2022 through October 2022 I bonds pay a 9.62% interest rate, and your money is guaranteed to be protected even if there is a stock market crash.

There is literally no better place to put your money right now that is safe and guaranteed to give you a high-return investment….(read more)


LEARN ABOUT: Investing During Inflation

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Inflation can be a real headache for investors. The value of their money decreases over time, and investments that once seemed like a sure thing can suddenly lose value. However, there is a relatively low-risk way to make money during inflation: investing in I bonds.

I bonds are a type of investment backed by the US government that are designed to keep pace with inflation. They pay a fixed interest rate, which is adjusted twice a year based on changes in the consumer price index (CPI). This means that as inflation rises, so does the interest rate on your investment.

The main advantage of I bonds is that they are virtually risk-free. Because they are backed by the US government, which has never defaulted on its debt, there is virtually no chance of losing your money. In addition, I bonds are exempt from state and local income taxes, and federal taxes can be deferred until they are cashed in.

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Another benefit of I bonds is that they are very easy to purchase. You can buy them online at the TreasuryDirect website, or through a bank or financial institution. You can invest as little as $25 and as much as $10,000 per calendar year. And if you need to cash out your investment early, you can do so after one year without penalty.

However, there are some downsides to I bonds that investors should be aware of. First, they have a relatively low annual purchase limit of $10,000 per calendar year. This means that if you want to invest more than $10,000 in I bonds, you will need to find another investment vehicle. In addition, I bonds have a fixed interest rate that can only be adjusted twice a year, and it may not always keep pace with inflation. As a result, I bonds may not provide the same returns as other, higher-risk investments.

Overall, I bonds can be a great investment option for those who want to mitigate the risk of inflation. They provide a low-risk way to earn a return that keeps up with the cost of living, and they are very easy to purchase and sell. If you’re looking for a way to protect your money during times of inflation, I bonds are definitely worth considering.

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6 Comments

  1. Lyn DeLo

    Love the voice change..lol

  2. Owen Gilmore

    Good information. I had a TIPS MF back in the early 2000s because I was inflation to kick in bigtime (obviously mistimed!). I need to look into these.

  3. Angela Peng

    Can foreign people purchase I-bond?

  4. James Shutiak

    I AM CONCERNED THAT CENTRAL BANKS CAUSE INFLATION AND THEIR VALUE WILL DECREASE AS INFLATION INCREASES.

  5. Geoffrey Finch

    Nice commentary Ed… I am puzzling over the matter of I-Bond vs. TIPS… any suggestion on which is better in which circumstances?

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