Nicholas Scheibner, CFP®, is quoted on this topic in an article on CNBC.com by Annie Nova, “How to invest smartly when inflation picks up”, originally published on May 21, 2021.
A 30-second read by Nicholas Scheibner, CFP®: Inflation in an economy is something that can directly affect a person’s monthly cash flow. When the price of their necessary monthly expenses goes up, such as rent, food, and utilities, it directly affects how much someone can invest or save. Inflation can be a great concern to investors who are on a fixed income, do not own their property, and are heavily invested in bonds and cash. They have very little wiggle room if their necessary fixed expenses start to go up, especially if interest rates for bonds, CD’s, and cash stay low.
“Another good match for investors worried about inflation are Treasury Inflation Protected Securities, or TIPS. These securities carry a similar risk as other fixed income investments, he said, but they add an adjusted principal amount if inflation increases.” Read the entire article from Annie Nova.
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