Here's a look at some of the options for balancing your retirement savings and inflation. Also, check out more of the week's best money reads from experts.
NEW YORK — Inflation does not discriminate. Just like it's squeezing everybody's wallet, it's hitting almost every investment in a retirement account.
That doesn't mean investors need to start day-trading their retirement accounts, after a long-term buy-and-hold strategy worked so well for years. But they may want to shade their portfolios in certain directions, including parts of the stock and bond markets that can actually benefit from inflation.BONDS LESS THREATENED BY INFLATIONBonds are supposed to be the safe part of anyone's portfolio.
Another type of bond from the government, called an I-bond, may be more lucrative. It pays interest made up in two parts: one that rises and falls with inflation, which resets twice a year, and another that's set when the bond is purchased. I-bonds available now are paying nothing on that second part, but the first is so high that they're currently paying a composite annual rate of 7.1%. These bonds also come with limits, though, and can't be cashed out for a year.
That may be because the Fed's usual medicine for high inflation - higher interest rates - can hurt gold. When bonds are paying more in interest, investors may be less willing to park their money in gold, which pays them nothing.
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