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- How to make the safest investment in the world and get an ok return?
How to make the safest investment in the world and get an ok return?
This is not a scam :-)
Hello my favorite people..
I know you have missed my weekly posts and have been waiting impatiently for the next issue.
Well, it's here and to compensate for being busy and not sending anything out for a while, I have a little treat for you.
If you have been in the markets, you are probably having a bad year. With all the major assets prices down 20%-90% (excluding oil), it fills like a long winter is ahead of us, and a game of thronesque winter if you are in crypto (Hello Sam-Bankman Fried) and tech stocks (hello interest rate).
The rise in inflation and the subsequent rate hikes to tame it by fed is making that investment account go red and it just doesn't seem to end.
However, what if I tell you there is an investment that favors higher interest rate and protects you against rising inflation.
Now, I am not into get rich quick schemes, and won't be able to to tell you the fastest way to get rich. What I am recommending is to buy the safest asset in the world. When I say safe, I mean the least riskiest, and lower the risk, lower the return.
For me, the safest asset in the world is US Treasury Bonds. It's never going to go bankrupt hence you will not lose your investment. The particular bond you want to buy is the Series I Savings Bonds. The bond currently pays 6.89% interest per year, paid semiannually. I know it doesn't sound a lot, but the way the interest is calculated is where it gets interesting. The interest rate is calculated by the combination of a fixed rate, and the inflation rate. The fixed rate as the name implies doesn't change for a 12 months period. However, the inflation rate is updated every 6 months (May 1 and November 1). So, every 6 month the rate is adjusted to match the current inflation rate. The other kicker is the semi-annual compounding piece. As the inflation rate is updated, the principal amount used to calculate the interest is the new value (principal + interest earned in 6 months), and not the original amount resulting in the higher interest payment.
If you have read this far, and think this is great, there is a caveat. One individual can only buy a maximum of $10,000 in electronic bonds per calendar year. So, I would buy it with your spouse's SSN and so on.
Ok, this sounds doable. But how do you actually go about doing it?
Just log into the US treasury website and create an account (Link below). There is no middle men making any commission, and you are directly buying it from the US government. Hence, the safest investment in the world.
As I mentioned earlier, this is not a way to get rich quick, but rather to protect your funds against the next financial downturn.
P.S. Just reply to this if you have any questions.