Reasons Why I Purchased Inflation-Linked Bonds

The UK economy is in a state of low growth and high inflation, in other words stagflation. This is why I decided to buy an inflation linked bond. So in this video, I’ll share my experience of how and why I did that and what I hope the reward will be. To find out more about becoming a pensioncraft.com Premium member, so that you can access the trackers I show you in this video and many other benefits, use this link What Else PensionCraft Offers: 💡 Book a coaching session with Ramin so he can answer your questions in a one-to-one video call via Zoom: 📰 Sign up for our free weekly market roundup to get news and views about what's going on in the stock market and wider economy 📖 Understand investment in more depth with my online courses ❓ Join PensionCraft on YouTube and you’ll be supporting me to make more content and I will answer your questions and respond to your comments on YouTube as a priority Timestamps 00:00 Introduction 00:31 Stagflation 03:42 Stagflation Investing 04:18 UK Inflation Linked Gilts “Linkers” 10:09 My Return Guess 12:04 Buying A Linker Isn't Easy! Where Else You Can Find Me 🎧Check out our weekly podcast "Many Happy Returns" on your podcast provider of choice 🌐 Website - 📱 Twitter - 👨 Facebook - 🔗 Linkedin - Tools I Use To Create My Videos ✔️ My primary data source is SharePad and an affiliate link for this is here (This link provides new users with a special offer and gives me a small commission) The rest of the tools I use are free open source software: ✔️ ggplot2 package in R for my plots ✔️ RStudio to edit and run R code ✔️ OBS to record my videos and live streams ✔️ Kdenlive to edit my videos Take A Look At Some Of My Other Videos & Playlists 📹 Investment Strategies playlist 📹 Income Investing playlist 📹 Investing With Vanguard playlist 📹 Portfolio Building Blocks playlist DISCLAIMER All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results....(read more)

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Why I Bought Inflation Linked Bonds Inflation is a constant concern for any investor. The possibility of eroding purchasing power underscores the need for solutions that can offset the effects of rising prices. One such solution I recently turned to is inflation-linked bonds. Inflation-linked bonds, also known as inflation-indexed bonds or simply TIPS (Treasury Inflation-Protected Securities), are a type of fixed-income investment specifically designed to protect against inflation. They provide a reliable means for investors to preserve their purchasing power over time, making them an attractive addition to any well-diversified portfolio. The main reason I decided to buy inflation-linked bonds is their unique ability to provide protection against inflationary pressures. Unlike traditional bonds, where the interest payment is fixed throughout the life of the bond, inflation-linked bonds adjust their principal value and interest payments according to changes in inflation. This means that as inflation rises, the value of the bond increases, and so do the interest payments. This adjustment maintains the real purchasing power of the investment, ensuring that the bondholder's return keeps up with inflation. Another advantage of inflation-linked bonds is their low correlation with other asset classes. While stocks and traditional bonds tend to be negatively impacted by inflation, inflation-linked bonds provide a hedge against rising prices. By including these bonds in a portfolio, investors can reduce the overall volatility and enhance diversification, ultimately creating a more robust investment strategy. Furthermore, inflation-linked bonds offer a predictable income stream that keeps pace with inflation. This feature makes them particularly suitable for investors seeking reliable cash flows to cover their living expenses in retirement or individuals with a long-term investment horizon. The reassurance of a regular income stream tied to inflation can provide peace of mind and help maintain a stable financial situation. Investing in inflation-linked bonds also enables participation in potential deflationary scenarios. As the principal amount of these bonds is adjusted downwards in the event of deflation, the investor is protected from losses that typically affect other fixed-income investments. This dynamic ensures that the value of the investment remains stable even in a deflationary environment, offering an added layer of security. Moreover, inflation-linked bonds come with the backing of the government, making them a relatively safe investment option. The principal and interest payments on these bonds are backed by the full faith and credit of the respective governments, which reduces the risk of default. This support from the government, coupled with the inflation-adjusted returns, enhances the attractiveness of these bonds to risk-averse investors. In summary, purchasing inflation-linked bonds offers several advantages for investors. These bonds provide protection against inflation, diversification benefits, a predictable income stream, the ability to withstand deflation, and security through government backing. By incorporating inflation-linked bonds into my investment portfolio, I have taken significant steps to safeguard my purchasing power against the erosive effects of inflation. https://inflationprotection.org/reasons-why-i-purchased-inflation-linked-bonds/?feed_id=132616&_unique_id=64f5152b24753 #Inflation #Retirement #GoldIRA #Wealth #Investing #bondinvesting2023 #bondinvestingstrategies #bondinvestment #Bonds #gilts #howinflationlinkedbondswork #howtohedgeagainstinflation #inflationinvesting #inflationlinkedbondsexplained #inflationlinkedgiltsexplained #inflationlinkedbonds #linkers #pensioncraft #pensioncraftbonds #raminnakisa #singlebond #stagflation #stagflation2023 #stagflationexplained #stagflationinvesting #stagflationmeaning #stockmarket #ukinflationlinkedgilts #UKinvesting #InvestDuringInflation #bondinvesting2023 #bondinvestingstrategies #bondinvestment #Bonds #gilts #howinflationlinkedbondswork #howtohedgeagainstinflation #inflationinvesting #inflationlinkedbondsexplained #inflationlinkedgiltsexplained #inflationlinkedbonds #linkers #pensioncraft #pensioncraftbonds #raminnakisa #singlebond #stagflation #stagflation2023 #stagflationexplained #stagflationinvesting #stagflationmeaning #stockmarket #ukinflationlinkedgilts #UKinvesting