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Safeist Investment to keep up with inflation

By Terry Savage on April 02, 2021 | Chicken Money

We have CD’s that earn less than 1% interest that are guaranteed by FDIC.
Are there other safe investments that would pay interest that keep up with inflation.
Thanks so much for your help.

Terry Says

If by safe, you mean able to get all your money out at any time without risk of loss — then NO there are no investments. You can buy Treasury bills at www.TreasuryDirect.gov, and they mature every 3 or 6 months, and will keep up with rising rates. But the Fed is keeping rates artificially low. You might do a bit better than bank CDs, but not much better with T-bills.

Now, if you want to close your eyes and not look –and never think about withdrawing — I can tell you that a diversified portfolio of American large company stocks with dividends reinvested (think S&P 500 index fund) has always beaten inflation over every 20 year period going back to 1926. Do you have that long a time horizon??

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