For many years, I built a habit around inflation-protected savings — primarily through U.S. Series I Savings Bonds (“I Bonds”), government-backed securities that combine a fixed rate with an inflation adjustment. They never made headlines, but they quietly kept pace with rising prices and offered a sense of stability when markets felt unpredictable.
That habit gave me something important: the confidence to take risk elsewhere.
Because I knew I had a safe, inflation-linked foundation, I could be more aggressive in my retirement accounts and long-term investments. That approach worked. Over time, the growth side of my portfolio became substantial, and the “safety net” quietly proved its worth — unmoved in 2008’s chaos, purposeful during 2022’s inflation surge.
But habits that serve us well in one phase of life don’t always deserve to run forever.
Recently, I paused and re-examined the role of inflation-protected savings in my financial system. The conclusion surprised me with its clarity:
- The rates are no longer exceptional.
- After taxes, the real return often just matches inflation — or less.
- Liquidity matters more to me now than squeezing out a small theoretical edge.
- And most importantly, the original purpose of this habit has already been fulfilled.
What once enabled risk-taking is now simply maintaining balance.
That doesn’t make the habit wrong. It makes it complete.
There’s also a psychological side to this decision. When you’ve followed a financial ritual for decades, stopping can feel uncomfortable — almost like breaking discipline. But discipline isn’t about repeating actions indefinitely. It’s about aligning behavior with current reality.
Today, my priorities are different:
- Simplicity over complexity
- Flexibility over lockups
- After-tax reality over nominal yields
- Peace of mind over “what if” scenarios
Pausing this habit doesn’t mean abandoning caution. It means acknowledging that enough protection is, in fact, enough.
If inflation were to surge again someday, I’m already protected. I don’t need to keep feeding a system that’s already strong. The marginal benefit no longer justifies the added friction.
Good financial habits compound.
Great ones also know when to step aside.
For now, this one has earned its rest.
And perhaps that idea applies beyond money — knowing when something has quietly completed its work is its own form of wealth.