The Feds Changed the Rate Again…

Please note that these are observations based on research and not on my professional opinion, nor am I representing professional financial planning services.

What you need to know

What is inflation? Inflation is the rate at which the price of goods and services increase. Just to give a quick example, where the consumer price index was last year at this time of year, it has increased 8.3% to now. Although there are different types of inflation, the one currently affecting us is cost-push, where goods and services increase and push prices higher. Please see this video for further explanation of inflation.

This inflation is different

Strategies to Combat Inflation

Investing

Treasury Inflation-Protected Securities are a type of bond indexed directly to CPI meant to help investors preserve purchasing power. This is known as the Barbell Strategy, which is a proactive approach to help mitigate risks. This strategy is a fixed income investing. The impact to doing this is that because the Federal Reserve is raising interest rates, it will reverse some of the stimulus measures that were put into place to combat the negative effects of the pandemic.

To get a basic understanding of inflation-protected bonds, you need to understand that they do not pay a fixed amount, but a quantity proportional to the cumulative inflation during the life of the bond.

Here is a list of suggested reading

You buy them through multiple mediums, but I am going to include screenshots if you choose to buy them as an individual representing an entity, in other words, having formed your own business.

Create a New Account
3 Step Process

Please keep in mind that you need an IRS Control Number.

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Published by carmk2002

It has been a year since I have started my journey in the digital world. With all of the knowledge I have gained, I am now expanding in 2023. Now I’m offering you the service of helping you get started on your journey of creating passive income. With my skillful approach of research, strategy, problem-solving, and of spotting business trends, you can book a coaching session with me. Book Your Session with me: https://stan.store/Educatedbaddie1

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