“So far this year, U.S. wage inflation has averaged about 2.1%. So it would be reasonable to assume that in due course general inflation will be at least that, if not more. That means your 10-year Treasury will actually leave you poorer, in real terms. This, of course, is assuming that inflation does not gather speed — which it has usually done in the past. If inflation runs above 2.1% a year, someone buying a bond paying just 1.6% will get hosed.”
Your money growing by 1.6% MINUS inflation increasing 2.1% EQUALS money in this vehicle is losing 0.5% every year for 10 years.
Are you outpacing inflation & making your money grow for you?
Or are you saving your hard earned money in a savings account or CD giving you nonexistent interest rates and losing money every year?
You have options. Do you know what they are?