Inflation is here to stay for a while. This is what you should buy

Suze Orman in New York.

Courtesy of Dominik Bindl | Getty Images Entertainment | Getty Images

Inflation is here to stay for a while, personal finance expert and best-selling author Suze Orman predicted Thursday.

Therefore, there are a number of things you should be doing to manage your money right now, she said.

“The number one investment that any of you should have, no matter what right now, is a Series I bond,” said Orman, who joined CNBC’s senior personal finance correspondent Sharon Epperson on CNBC’s Twitter Space conversation, “Invest with pride: Ready. Adjust. Growing up.”

“There is no excuse.”

I bonds are backed by the US government and do not lose value. They earn interest on both a fixed rate and a variable rate, changing every six months. The variable rate is inflation-based and is now at a record high of 9.62% until October 2022. The fixed rate is 0%.

You can only buy them directly from the Treasury Department’s website, TreasuryDirect.gov. The amount starts at $25 and you can invest up to $10,000 each year, although there are some exceptions, such as the ability to get up to $5,000 of paper I bonds as part of your federal tax refund.

If you want to buy paper bonds instead of electronic bonds, you can buy between $50 and $1,000 per year.

You can’t cash in the bond for a year, and if you cash them in before five years, you’ll lose the previous three months of interest. While the best thing to do is to hold onto the bond for five years or more, if you don’t think you can do that, don’t let that stop you from buying, said Orman, host of the show “Women and Money”. Podcast.

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“Given that inflation is likely here to stay for a while, even with a three-month interest penalty in years two through five…It’s still worth it, believe it or not,” said Orman said.

The latest consumer price data is expected to be released next week. Last month, the Bureau of Labor Statistics announced that the consumer price index, which measures the prices of goods and services, jumped 8.3% in April from a year earlier, the highest level since the summer of 1982.

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