Letter Re: Advice on Short Term Shelter from Inflation

Mr. Rawles:
After reading your recent comments regarding the possibility of extreme inflation in the US, I began asking myself how well prepared I am to handle such a situation. The answer was not pretty. You see I am only 24 years old and my wife and I are saving for a house, so most of our funds are tied up in some sort of bank. I fear that if inflation hits, all that cash in the bank will be worthless, and all my saving will be for naught. Do you have any suggestions on how a person like me who needs to save a large sum of money, can do so with as little risk as possible?

I plan on buying a few more tangible items like an old diesel truck and a rifle for my wife, but I need the majority of my funds to be available for a down payment in the March timeframe. Thanks for any suggestions. – Paul in Kansas

JWR Replies: Here in the U.S. the best place to park funds in the short term with protection from inflation is in Treasury Inflation-Protected Securities (TIPS) , which are inflation indexed. They are available through Treasury Direct.