Financial advisors usually recommend stocks and bonds but if you can’t stand the volatility, there are still ways to maximize cash. Make sure you always check the interest rates on checking, savings, and money market vehicles, they have room to rise thanks to the Federal reserve’s rate hikes.
Also consider government securities such as short-term T-bills or bond funds. Investors seeking to protect against inflation could consider I bonds and TIPS (Treasury Inflation Protected Securities). If you have a longer time horizon then consider Equity indexed annuities, they have attributes of both stock and bond investments.
“Don’t stuff it in your mattress,” said Peter Casciotta, owner of Asset Management and Advisory Services of Lee County in Cape Coral, Florida. While inflation runs at a 40-year high, “that’s just losing money safely.”
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