Inflation Woes

Secure your portfolio against rising prices

Department at www.treasurydirect.gov, avoiding virtually all fees. Williams suggest funds such as Fidelity Inflation-Protected Bond Fund [FINPX].

Stock funds If prices rise, corporations will be on the receiving end of those extra dollars, so you should own corporate shares. Stock funds can give you broad exposure to the U.S. market (see “Course Correction,” October 2006). If you hold fund costs down, more of your returns will find their way into your own pocket. Morningstar reports that as of fall 2006, the average domestic stock fund will charge you about 1.45% of your investment each year. Look for funds with costs below that norm to maximize your chances for above-average returns.

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