Inflation Protected Bonds
Have you heard of Inflation Protected Bonds? These are funds which rely on Treasury Inflation Protected Securities, treasury bonds and notes whose principal and coupon payments move up with the cost of living. This greatly reduces the inflation risk, which is something to think about because if you hold bonds and then interest rates go up, the bonds go down. We probably will be facing a rise, and then a notable rise, in interest rates in the (not too distant) future considering the debt of the United States, and we will be facing a rise in inflation.
Usually you want to be ready to move your funds out of bonds, and be able to do that easily and quickly and have all the “buckets” and fund holdings and transfer routes ready to do rather than requesting them to be set up at the last moment and find out it is too late.
But one other idea you may consider is to open a “bucket” where you have some money in Inflation Protected Bonds. You do not need to put very much into them, actually when they go up, they rise in very small amounts so it really isn’t a “get rich” investment and not even close. “Normal” bonds typically rise in value more (though they have been not performing of late).
But Inflation Protected Bonds are a “bucket” where you can then add more money into later if things start to go south on bonds and we see rising inflation and/or interest rates.
Something Capitalists and investors should keep in mind and prepare for.
Have you heard of Inflation Protected Bonds? These are funds which rely on Treasury Inflation Protected Securities, treasury bonds and notes whose principal and coupon payments move up with the cost of living. This greatly reduces the inflation risk, which is something to think about because if you hold bonds and then interest rates go up, the bonds go down. We probably will be facing a rise, and then a notable rise, in interest rates in the (not too distant) future considering the debt of the United States, and we will be facing a rise in inflation.
Usually you want to be ready to move your funds out of bonds, and be able to do that easily and quickly and have all the “buckets” and fund holdings and transfer routes ready to do rather than requesting them to be set up at the last moment and find out it is too late.
But one other idea you may consider is to open a “bucket” where you have some money in Inflation Protected Bonds. You do not need to put very much into them, actually when they go up, they rise in very small amounts so it really isn’t a “get rich” investment and not even close. “Normal” bonds typically rise in value more (though they have been not performing of late).
But Inflation Protected Bonds are a “bucket” where you can then add more money into later if things start to go south on bonds and we see rising inflation and/or interest rates.
Something Capitalists and investors should keep in mind and prepare for.