Issue Date: November 19, 2006
Inflation-proof your savings
The right stocks, "TIPS," I-bonds and gold can help.
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Inflation fears are definitely rising, as the price of crude oil -- and consequently, goods and services -- has increased. The potential effects on your investments (and quality of life 20 or 30 years out) is real. To make sure your portfolio keeps pace, here are some strategies to help make it more inflation-proof:
Be aggressive. Stocks historically have performed better than bonds, but be selective with your picks. Invest in industries where price increases can be passed on to consumers (such as logistics companies, like those that purchase space on cargo ships and planes) or the health care sector, because there is continued demand for drug companies that have strong pipelines.
Switch up "safe money." Move money from long-duration bonds to treasury inflation-protected securities, or TIPS. These work like bonds, but your principal is tied to the Consumer Price Index (a key inflation gauge). As inflation rises, your principal does, too. I-bonds also are a good bet: Here it's the interest rate, rather than the underlying principal, that moves with prices. So put some "safe money" in a TIPS mutual fund, such as Vanguard Inflation-Protected Securities Fund, or an exchange-traded fund, like iShares Lehman TIPS Bond.
Consider commodities. Gold, other commodities and real estate generally are good hedges against inflation. Yet they've already seen strong gains over the last few years. Some inflation expectations already may be baked into their prices. Still, many financial advisers say that adding a touch of gold -- along with these other investments -- is a good way to diversify your portfolio.
Sharon Epperson is CNBC's personal finance correspondent.
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Hot ways to bundle up for winter exercise
Cold weather is no reason to take your workouts inside. With the right gear, you can achieve style, comfort and protection from the elements.
Kelly Maggs, product manager for REI Outdoor Cross Training, recommends layering, plus the leading-edge fabric Polartec Power Stretch. "Look for jackets with critical seams taped or all seams taped with venting and fabrics that feel cozy and keep you warm and dry," she says.
In cold climates, look for fleece-lined clothing with a smooth face; in rainy climates, you'll need water protection. Says Maggs: "People should purchase items to be used for more than one activity." Think about whether you'll be able to pair the piece with other items.
And don't forget the latest in workout gear: wearable technology. Many items now have pockets and ports to seamlessly incorporate cellphones or music players into your outfit.
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A gift to yourself: 1-time pass for airline lounges
With major airports crowded and flight delays all too common, airline lounges have never looked better. Who wouldn't want to step into a quiet, private club and enjoy free beverages and snacks, relax in a comfortable chair, and have access to magazines, Wi-Fi and personal assistance for changing flight reservations?
The cost of individual memberships in these clubs ranges from $375 to $500 a year -- a steep price for anyone who isn't a frequent flier. But major carriers sell one-visit passes (from $25 to $50) that can quickly remove you from the madding crowd. Check your airline's website for details.
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Easy, elegant starter
One of the most popular appetizers I've ever served, this combo of low-calorie seafood and antioxidant-rich tomatoes, onions, avocado and cilantro looks and tastes great.
Scallop-Avocado Appetizer
1 pound dry-pack scallops(16 to 20 count)
1 cup chopped tomato
1 cup sliced green onions
1 avocado, cubed
1 cup chopped cilantro
6 Tbs. fresh lime juice (2 limes)
1 Tb. olive oil
1/2 tsp. hot pepper flakes, or to taste
1/4 tsp. salt, or to taste
In a small pan, bring 4 cups of water to a boil. Add scallops, reduce heat and simmer 1 1/2 minutes -- do not overcook. Drain and refrigerate for2 hours. Cut into small (1-inch) pieces.
Combine all ingredients. Serve in cocktail glasses.
SERVES 6
Per Serving: 159 calories, 14g protein, 9g carbohydrates, 8g fat (1g saturated), 25mg cholesterol, 3g fiber, 231mg sodium
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