Treasury Inflation Protected Securities (TIPS) have the properties of a bond. Since bonds are just a kind of loan, we can expect to get our money back when the loan period is over. What makes TIPS especially attractive, however, is… Continue Reading
Treasury Inflation Protected Securities (TIPS) protect investors from inflation by automatically adjusting the original face value of the bond for inflation. What I have discovered is that this feature is used for different purposes by different people. I tend to… Continue Reading
Where you choose to buy your Treasury Inflation Protected Securities (TIPS) is very important. As I mentioned in the article: Inflation Protection and Taxes, failing to put your TIPS into a tax advantaged account causes them to shed their inflation… Continue Reading
It’s important to understand that inflation protection is removed when taxes are applied. Current tax rules disregard inflation, and as a result it’s easy to demonstrate that inflation can cause all of our interest on a TIPS and some of… Continue Reading
I got an interest payment from one of my TIPS recently. It feels pretty good to watch your income automatically go up with inflation. As I mentioned in the article: “Introducing Treasury Inflation Protected Securities (TIPS)“, these bonds pay out… Continue Reading