Quick! Name an asset class or security known for its inflation-fighting ability. Odds are commodities, gold or even treasury inflation-protected securities (TIPS) came into your head first. And yes, those are pretty decent inflation fighters. But they’re also pretty exotic and “exciting” asset classes. Think about how many times gold shows up in an article. It’s a lot.
You know how many times I-bonds are talked about by financial media and market pundits? A big fat goose egg.
But for those investors looking to fight inflation and benefit from a whole host of other positives, lowly and forgotten I-bonds could be one of the best savings tools at our disposal.
The Treasury’s Inflation-Fighting Gift
I-bonds often take a back seat to the Treasury’s other inflation-fighting fixed income choice, i.e. TIPS. But investors should really be giving them the nod. And that’s because I-bonds feature a ton of other benefits besides just accounting for changes in the CPI.