BLOG SERIES – COMBATTING INFLATION. A Couple of Easy, Small Ways to Combat Inflation
1. I-Bonds are paying 9.625%!
As of 5/1/22, the yield on the treasury’s i-Bonds has moved up to 9.625% – a level we have not seen in a long time. These bonds can be purchased at www.treasurydirect.gov and offer guaranteed principal if held for 5 years, in addition to the attractive high yield.
If you redeem your bonds before five years (you must hold them for a least 1 year), you will forfeit 3 months of interest. Unfortunately, savers can only invest $10,000 per year into the i-Bonds. The purchases are on a per social security number basis, so a married couple could invest $20,000 now, and another $20,000 in January, which is a new tax year. Please note that the interest rate can go up or down every six months, as they are tied to inflation.
2. Did you know you can own prime US farmland, and receive approx. a 2% yield while you wait?
US farmland has historically been a very good investment and in recent years, billionaires like Bill Gates and Jeff Bezos have been big buyers. Not only does this premier land have great intrinsic value, but it is of course also a limited resource.
If food shortages develop tied to either fertilizer and energy shortages, or drought or trucking problems, these farmland investments may prove to be profitable, and they often pay 1.5% – 2.5% in dividends while you wait.