6 financial advisors explain how they manage their investments in the face of inflation

In a time of high inflation, here’s what financial planners are personally doing with their money.

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The US inflation rate hit 7.9% in February, according to government data released Thursday. It remains at its highest level for 40 years. High inflation is undoubtedly a concern for investors, with nearly nine in 10 adults saying they are at least somewhat concerned about inflation, according to a February survey by online research firm Momentive for The New York Times. So we asked financial planners: what do you personally do with your money to fight inflation? (You can use this tool from SmartAsset to be matched with a financial planner that meets your needs.)

Growing Real Estate and Commodity Holdings – Steve Stanganelli, Certified Financial Planner at Clear View Wealth Advisors

“I increased my positions in real estate, public and private REITs, commodities via physical asset backed ETFs and TIPS. Lots of TIPS instead of corporate and longer dated Treasury bonds says Stanganelli.

Invest in bonds I Lisa Weil, Certified Financial Planner at Clarity Northwest, and Cait Howerton, Certified Financial Planner at Facet Wealth

An I bond is “a savings bond that pays interest based on a combination of a fixed rate and an inflation rate” and it allows you “to save in a low-risk product that helps protect your savings against inflation,” says the Treasury Department. I Bonds are offered by the US Treasury and the initial interest rate on the new Series I Savings Bonds is 7.12%.

Howerton notes that he invests “in I bonds for 18 months to [about] a return of 7%”, in addition to keeping “short-term cash reserves in a high-yield savings account” and maintaining “a risk-appropriate asset allocation and rebalancing strategy”. She also plans to “use more coupons and keep a budget and buy in bulk when possible to get a discount per unit,” she says.

Weil is also a fan of the Ibonds. “For cash reserves that I hold for my spending needs in a year or more, I buy Series I savings bonds,” she says.

You can use this tool from SmartAsset to be matched with a financial planner that meets your needs.

Purchase of gold-related securities Bruce Tyson, Wealth Advisor at Morton Wealth

“I bought gold-related stocks over the last year as the Fed made it clear they were raising rates and inflation numbers were rising,” Tyson says.

Buy shares JJ Burns, Certified Financial Planner at JJ Burns & Company

“[I am] buy stocks. Equities have consistently outperformed inflation. Stocks are businesses, real businesses, that we as consumers buy goods and services that we need to live our lives. As inflation rises, businesses have the choice of raising prices to reflect rising input costs or incurring the additional costs to produce goods. Companies are for the most part increasing their prices, which means that profitability will likely continue, as will continued profitability ratios,” says Burns.

Staying the course, in line with its long-term strategy Bobbi Rebell, Certified Financial Planner and Personal Finance Expert at Tally

“I haven’t changed my investment strategy. I believe in a long-term approach so I don’t make short-term changes to my portfolio. In terms of fresh money, I believe in dollar cost averaging, which smooths out the ups and downs of the market and I stick to that approach,” says Rebell, the author of Launching Financial Grownups.

You can use this tool from SmartAsset to be matched with a financial planner that meets your needs.