Here are 5 excellent options for investing cash today. Each of these cash accounts offer security and rates that, for the moment, exceed inflation.
Savings Account:
Money Market Account:
No-Penalty CD:
T-Bills:
iShares iBonds Treasury ETF:
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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LEARN ABOUT: Investing During Inflation
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5 Best Places To Park Cash Now To Beat Inflation
Inflation has always been a concern for investors and individuals looking to preserve their wealth. With the current economic uncertainties and rising inflation rates, it is more important than ever to find the right places to park your cash. Here are five options that can help you protect your money and beat inflation.
1. Stocks and Bonds: Investing in stocks and bonds has been a traditional method to combat inflation. By diversifying your portfolio with a mix of stocks and bonds, you can potentially earn higher returns and keep up with the rising prices. However, it is essential to carefully research and choose stocks and bonds that have the potential for growth and stability to minimize risks.
2. Real Estate: Real estate has long been considered a safe and reliable investment. In times of inflation, the value of property tends to increase, providing a hedge against rising prices. Investing in residential or commercial properties can offer income through rent or appreciation, protecting your cash from inflationary risks.
3. Commodities: Investing in commodities such as gold, silver, or oil can be an effective way to preserve the value of your cash. These tangible assets have historically shown correlation with inflation, making them a popular choice for investors during uncertain economic times. Commodities can act as a store of value and provide a reliable hedge against inflation.
4. High-Yield Savings Accounts: Although traditional savings accounts might not offer significant returns, high-yield savings accounts are currently available at some financial institutions. These accounts typically offer higher interest rates than standard savings accounts, providing a safe and accessible way to park your cash while still earning a modest return.
5. Treasury Inflation-Protected Securities (TIPS): TIPS are U.S. government bonds designed to protect against inflation. These bonds adjust their value based on changes in the Consumer Price Index (CPI), ensuring that your investment keeps pace with inflation. TIPS provide a guaranteed return on investment, making them an attractive option for risk-averse investors looking to shield their cash from erosion caused by rising prices.
Before making any investment decisions to beat inflation, it is crucial to consult with a financial advisor or conduct thorough research to understand the risks involved. Each investment option comes with its own set of advantages and disadvantages, and what works well for one individual may not be suitable for another.
By carefully considering these five options – stocks and bonds, real estate, commodities, high-yield savings accounts, and TIPS – you’ll be able to make informed decisions to protect your cash and stay ahead of inflation. Remember, diversification and staying informed are key to making sound investment choices in any economic climate.
Do 4 week t bills actually pay 5.3% or is it one twelfth of that? T.y
Ive never heard of most of these banks. I worry about stability
22% inflation since inauguration of FJB, 5-6% is nothing compared to what it is costing you to live today. So if you get 5% this year your only lost 17%
over the past 20 months!
thanks Rob!
If a financial advisor is talking, don’t listen. The stock markets on fire and this guy would be losing money. Stay away from all financial advisors. Put 90% of your money in the S&P 10% in cash and leave it alone.
Buy $JEPI, $JEPQ or $SPYI. These stocks pay around 10% a month in dividends with not much risk of losing value.
SWVXX money market in brokerage
Great video, one question though
All my retirement money is in regular IRA are these OK to use in that retire in 3.5 years pull SS 5 years later
There are better way, it is call floating treasury etf, just buy it and reinvest dividend and forget it. sell anytime with no capital lost and make 90 day treasury rate. over 5% now
Is there anything higher for larger amounts of money?
I'm also a ROM fan.
I do not understand clearly the difference from an investor point of view between buying the iShare iBond 2023 (IBTD) and buying a 3 years treasury standard bond etf. Both have variation in their day to day trading. I understand that a standard treasury fund has bonds maturing at different dates. It constantly replace those when they matured with new bonds. IBTD has every bond maturing on Dec 2023. But what does that actually changes? It does not prevent a variation in its day to day price. On April 2020 shortly after it started, it was $25.69 while it closed at $24.72 today.. This is expected with the rise of interest rates that occurred. Is there a guaranteed price when IBTD close?
I m holding 3 mo T-bills 5.3%. storing cash while waiting for housing market to change. Went through Fidelity they are really great helpful.
Excellent review. Question what is your position on NON Callable Brokered CD's where the interest is NOT Compounded vs a Regular CD's you can buy from a Bank which is compounded? I'm struggling with which one to buy. Thanks.
Thanks for the content. I saw the screen and did not realize that the two year Treasury Notes rates were that high. I have been buying T-Bills in small amounts on every auction for a while though Treasury Direct without the reinvestment option. When they mature I reinvest at the next available auction plus the small contribution. In June I have enough for next year's Roth max contribution for me and my wife. As they mature I'm putting more into newer T-Bills that mature near Jan so I can lump sum contribute at the beginning of the year to our Roths. Now I'm putting aside funds in T-Bills for insurance premiums and other upcoming expenses instead of parking it in our credit union savings account for a few months that earns a whopping 0.1%
We also have most of our short term cash in a money Market online bank account and a few CD's some are penalty free.
Nice one; thank you
You don’t need to beat inflation.
Everyone’s inflation basket is different.
Hi Rob, is there a reason why you decided not to mention money market funds?
Muni bonds?