Here’s an option to protect your portfolio from inflation

Inflation is a top concern as investors fret about the rising cost of groceries, housing, gasoline and other living expenses.

The May Consumer Price Index, a key inflation gauge, will be revealed on Thursday and may be higher after an alarming spike in April.  

“Clients are asking about it,” said certified financial planner Leona Edwards, wealth advisor at Mariner Wealth Advisors in Nashville, Tennessee. “They’re all concerned about inflation going up.” 

As older investors and retirees scour for ways to maintain purchasing power, they may miss a nearly risk-free option they can purchase through the U.S. government: I bonds. 

While I bonds currently offer a 3.54% annual rate, it may not be right for every portfolio, financial experts say. Here’s what investors need to know.  

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The Treasury Department created 30-year I bonds in 1998 as a hedge against inflation for everyday long-term savers.

There are two parts to I bond returns: a fixed rate and a variable rate, which changes every six months based on the Consumer Price Index. The value of an I bond doesn’t decline, and rates won’t drop below zero. 

“In today’s environment, government bonds are paying little to…