Nicole Lapin

One other thing to know here, tips are way better for long-term money than short-term savings.

Because their principle fluctuates with inflation, if you need to sell before maturity, you have to deal with market pricing.

And in a rising real interest rate environment, that can mean a loss on paper.

So hold them to maturity and you're protected.

Trade them in the middle and you're exposed to normal bond market risk.

Charles Schwab published an analysis noting that right now, while most tips yields are positive, very short-term tips did briefly turn negative after the Iran war began in February.

So again, these are designed to be long-term inflation hedges, not short-term cash substitutes.

So just remember that.

Now, last but certainly not least, gold.

The relationship between gold and inflation is real, but not exactly simple.

So this is the least direct option to hedge against inflation.

You've been warned.

With that said, over long time horizons, gold is a reliable store of value.

From January of 2016 to January of 2026,

gold returned over 300%.

U.S.

inflation over that same decade totaled 33%.

So gold didn't just keep pace with inflation, it absolutely smoked it.

At the time I'm recording this, gold is trading at around $4,400 per ounce, which is up $1,000 from a year ago.

The all-time high was $5,600 per ounce, which it hit in January of this year.