Inflation is one of the natural enemies of most investors. Think of it as compounding in reverse: What your investment returns give with one hand, inflation can take away with the other.
Compared to previous periods in history, inflation appears to be under control in the United States. Nevertheless, investors should consider the toll that inflation can take when building a portfolio.
There are several tools you can use to add some inflation-protection to a portfolio – especially to a portfolio that consists predominantly of fixed-rate investments.
Here are some options to choose from.
Treasury Inflation-Protected Securities (TIPS) >>