Inflation is running hot…
In fact, based on the latest Consumer Price Index (CPI) data released yesterday morning, it’s running at the highest rate in 31 years.
That’s why at PBRG we recommend a diversified portfolio of investments that can keep your money growing as fast as possible – everything from cryptos to collectibles.
But if you still have some cash sitting in a money market, certificate of deposit (CD), short-term Treasury, or other “risk-free” equivalent… I’ll share with you a type of ultra-safe, income-producing bond that you might not know about.
Ironically, it comes straight from the U.S. government – the same entity helping fuel inflation with its multitrillion-dollar stimulus programs. And it’s specifically designed to counteract the ravages of inflation.
It’s a special type of U.S. savings bond that is currently paying 7.12% annual interest – more than 14 times as much income as the very best savings and money market accounts.
If you’re looking to beat inflation, it’s the perfect investment to add to your portfolio. In fact, I’ve bought them for everyone in my household.
And below, I’ll explain why you should, too.
A U.S. Savings Bond That Actually Fights Inflation
The income idea I’m talking about is the Series I Savings Bonds. (They’re also called I-Bonds.) The U.S. Treasury launched them in 1998.
Like other Treasury bonds, the U.S. government directly issues and backs these investments.
They’re virtually guaranteed to keep pace with rising prices. (Albeit, as measured by the flawed CPI.)
But unless the U.S. government defaults on its debt, you can’t lose any principal on I-Bonds – even if we experience deflation… or you need to cash them out before maturity.
That’s because, like their better-known counterparts – Series EE Savings Bonds – their value doesn’t fluctuate even though you earn interest for holding them.
The interest from these bonds is comprised of two different components that are adjusted every six months.
The first is a baseline interest rate. And while there have been some blips as high as 0.5%, it’s largely been 0% for more than a decade.
This part of the interest is locked in when you buy the bond.
The other component is the inflation-pegged interest rate. It varies over time along with the Consumer Price Index for All Urban Consumers (CPI-U).
The new rate is announced every six months in May and November… so it was recently updated. And I-Bond holders receive the new rate every time it changes.
That also means the interest compounds semiannually – earning holders more interest on the interest they’ve already collected.
And at the new composite rate of 7.12%, the total interest being paid out is the second highest it’s ever been.
That’s more than 14 times higher than what you’d get from even the best money market and savings accounts right now… And about ten times higher than the highest-yielding 1-year CDs I could find.
And as we’ve already established, you get direct government backing… which is even better than having money in an FDIC-insured bank account or CD.
On top of that, you’ll get other benefits such as certain tax breaks and the chance to see yields go up over time.
In fact, the interest you earn from I-Bonds is exempt from regular state and local taxes.
Plus, if you use the proceeds for qualified education expenses, your gains could be free from federal taxation as well.
Add it all up and I-Bonds are a safe, income-generating idea. That makes them the perfect complement to our asymmetric ideas like cryptos and private equity deals.
The Next Step In Your Wealth-Building Plan
You can purchase up to $10,000 of electronic I-Bonds per social security number every calendar year in whatever denomination you prefer – right down to the cent (with a $25 minimum). Just visit www.treasurydirect.gov.
And if you get a tax refund, you can purchase up to $5,000 of paper I-Bonds every calendar year as well ($50 minimum). You can see this option on the 1040 tax form.
The only real downside with I-Bonds?
You can’t cash them in for the first year of ownership. So they’re less liquid than some “cash equivalent” alternatives.
And while I-Bonds earn interest for 30 years… if you redeem them before five years… you’ll forfeit the latest three months of interest.
Given all the other advantages, though… they’re an excellent way to generate safe income and beat inflation.
You can use a portion of that safe income to buy cryptos and private equity. Those ideas could end up being more profitable than all your safe income combined.
And even if they don’t work out… you’ll continue to replenish your safe income with more interest from your I-Bonds.
With inflation rising, now is a great time to look into I-Bonds.
I’ve purchased them for everyone in my household… And we’ve held them for many years. You should consider doing the same.
Best Wishes,
 |
Nilus Mattive
Analyst, Palm Beach Daily
P.S. While I-Bonds pay higher yields than traditional bonds… we’ve found a way to do even better.
They’re called “Tech Royalties,” and they’re a new way to earn income from your crypto assets.
Some Tech Royalties can pay yields as high as 20% or more. That’s nearly 14x times higher than traditional 10-year Treasury note.
And these aren’t just some backtested numbers, either. They’re real yields some of our subscribers are earning right now. And because Tech Royalties pay out their yield in more crypto – you can also see explosive price appreciation, too.
For instance, one of our Tech Royalties is currently up 37,470% since we recommended it in March 2020.
And thanks to a pre-programmed event Daily editor Teeka Tiwari calls, “The Second Phase,” a handful of these special cryptos is about to soar in price…
To learn more about Tech Royalties and the Second Phase – including Teeka’s No. 1 Tech Royalty to buy right now – click here.
This opportunity won’t be online for long… and once the Second Phase triggers, it’ll be too late.