Investors are always searching for ways to protect investments from losses and the eroding effects of inflation. One type of investment that can help with this is Treasury Inflation-Protected Securities (TIPS), which are designed to keep up with inflation by adjusting their value based on changes in the Consumer Price Index (CPI). But TIPS are just one tool in an investor's arsenal for protecting against inflation.
Here are some additional tips for investing to protect against inflation:
-
Diversify your portfolio: Inflation can have a negative impact on certain types of investments, such as bonds and cash. By diversifying your portfolio with a mix of stocks, bonds, and other assets, you can reduce your risk of losses due to inflation.
Invest in real assets: Real assets like real estate, commodities, and infrastructure can provide protection against inflation because their value tends to rise with inflation. Just be sure to do your research and invest in assets that are likely to maintain their value over time.
Consider international investments: Inflation rates can vary widely from country to country, so investing in international markets can provide some protection against inflation in your home country.
Invest for the long-term: Inflation can have a greater impact over longer periods of time, so investing for the long-term can help you weather inflationary storms.
Stay informed: Keep up with news and trends that could impact inflation, such as changes in monetary policy or energy prices.
Money and investing stories popular with MarketWatch readers over the past week include:
-
How to invest in stocks, including how to select a brokerage account and research stock market investments.
-
The quickening pace of tech layoffs is creating growing uncertainty for workers, but it's giving investors access to a new wave of technical talent.
-
With her advice, you'll be well on your way to success as an investor. Key points. Tori Dunlap recommends that investors in their 30s use a high-yield savings account for emergency funds, invest in index funds, and consider a Roth IRA.
There are a few ways expectant parents and those who already have young children can set their family up for financial success. Some tips include:
-
Start saving early: The earlier you start saving for your child's future, the more time your money will have to grow.
-
Consider a 529 plan: A 529 plan is a tax-advantaged savings plan that can be used for education expenses. Contributions to a 529 plan grow tax-free and can be withdrawn tax-free if used for qualified expenses.
-
Automate your savings: Setting up automatic contributions to a savings account or investment account can make it easier to save consistently over time.
Investing is a must if you're looking to build wealth and achieve long-term goals such as retirement. At its core, investing involves putting your money to work in markets to generate returns over time. Some key tips for investing include:
-
Start early: The earlier you start investing, the more time your money has to grow.
-
Stay diversified: Diversifying your portfolio can help reduce your risk of losses.
-
Be patient: Investing is a long game, and it's important to stay disciplined and patient even when markets are volatile.
-
Consider your risk tolerance: Everyone's risk tolerance is different, so it's important to invest in a way that aligns with your personal goals and risk tolerance.
