Ask Terry Questions Are iBonds good inflation protection?

Are iBonds good inflation protection?

By Terry Savage on March 25, 2018 |

Dear Terry, I've read that iBonds from the US Treasury are a great investment because they automatically adjust for inflation.Is this true,and what do you think about them? Thank you for your advice through the years!

Terry Says

Don't confuse Series I Savings Bonds with TIPS (Treasury Inflation Protected Securites).  I--bonds are no longer a good investment.  Period.  That's because they changed the way interest is calculated and added.  Just stay away from them.  You can buy Treasury inflation adjusted securities in a bond fund such as the American Century TIPS fund.  They should mitigate the impact of future inflation on the price of the bonds.

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