The Price of Inflation Insurance for Retirees

Retirees looking to protect their savings from inflation have several options to consider. Conventional Treasury bonds offer a fixed interest rate of around 4%, but may be risky if inflation or real rates turn out to be higher than expected. Treasury Inflation Protected Securities (TIPS) offer a lower interest rate of around 1.7%, but provide protection against inflation. Diversifying investments across different maturity dates and adding small doses of commodity plays can also help guard against inflation. It is important to consider costs, such as expense ratios, and the tax implications of different investment options.