Series I savings bonds offer high rates of return in order to beat inflation

SAN FRANCISCO (KGO) — Whether shopping for new clothes, filling up your tank or buying groceries, inflation is front and center. San Ramon’s Dennis Larson speaks for a lot of us. “Groceries have gone up there substantially over the last I’d say five, six months; it’s just unbelievable,” he says.

“So it’s like, you know, we’re spending double that we did it this time last year. ” And investing? It is a tough world on Wall Street and Main Street. Respected financial planner Rick Miller holds a Ph.

D in economics and founded Sensible Financial Planning . Here’s how he sums up today’s financial reality: “Inflation is a thief and it steals people’s purchasing power and it is very difficult to position your assets to protect against inflation. ” RELATED: How you can customize your mortgage rate for a better deal EMBED > More News Videos Mortgage rates are not one-size-fits-all, and homebuyers need to act in order to get a lower personalized rate.

Difficult — but he says there are options. He points to I Bonds offered by the federal government. “They are a very good deal,” he says, “especially right now when inflation is high, but I think in general, they are a good deal because they always protect against inflation.

” Series I Savings, or “I Bonds,” are paying so much right now they sound like a scam. They are sold direct to consumers through the website TreasuryDirect. gov , and on this website the good news is actually buried in the small print.

Read through a few paragraphs and you’ll find the interest rate is now 9. 62%. “I Bonds basically pay an interest rate that is a real interest rate.

. . plus inflation,” says Miller.

The “I” in the name means “inflation-linked” as a matter of fact. RELATED: Wells Fargo unveils program to help low-income residents build savings The catch? You need to be aware of a few rules: The rate changes every six months Your money must be left there for a while You are restricted on how many you can buy RELATED: Want to invest in cryptocurrency? Here’s what you need to know EMBED > More News Videos Stories of cryptocurrencies skyrocketing in value might motivate you to invest — but before you do, here’s what you should consider. Still, for most of us they are a great deal.

“That’s right,” says Miller, “I would say that if you have cash reserves, and if you can wait a year to have access to those cash reserves, then yes, it’s a good idea, and even if you can’t set aside $10,000. Maybe you can set aside $100 or $200 or $500, right? You don’t have to put $10,000. ” Take a look at more stories and videos by Michael Finney and 7 On Your Side.

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