Also, any asset that isn’t appreciating at least 4.2% is losing value.

Ah…inflation.

frollogaston 3 hours ago | parent | next [-]

And you're still taxed on the "gain"

	▲	paulddraper an hour ago \| parent [-]
		And now we see the picture come together.

▲

grassfedgeek an hour ago | parent | prev [-]

The solution is Treasury Inflation Protected Securities (TIPS). You do have to pay taxes on the inflation adjustment (OID income). As long as the interest (after taxes) is higher than taxes on inflation adjustment you're good.