This article is reprinted by permission from NextAvenue.org.
Many people approaching retirement are concerned about today’s low interest rates and high inflation, worrying that savings and investments won’t keep up with rising costs. If this sounds like you, I suggest considering adding a type of U.S. savings bonds known as I bonds to your retirement mix because they’re now paying a safe, high return far better than you can get elsewhere.
An I bond is a savings bond just like the kind your grandparents may have given you on your birthday growing up, with a unique twist. Instead of providing only a fixed rate of interest the way traditional EE savings bonds do, an I bond also has a built-in inflation component that gets added every six months. That’s very valuable in today’s economic environment with inflation running around 5.4% or so.