I started an inflation protected portfolio in July of 2017. Here are my results so far:
Since July of 2017, I have gradually increased my portfolio to $14,000 in TIPS and my current adjusted principal is: $14,303.87.
In the last 5 days, there was no loss due to inflation. In fact we are in a deflationary time so the adjustment went backward -$8.15.
Since July 2017, I have been protected from a loss of: $303.87
I’m currently getting paid an income of: $5.73 per month on top of the fact that my investment’s principal is being adjusted for inflation as reported above.
Interest payments are made in two coupon per year (semi-annually) and they too are adjusted for inflation over time because they are based on the adjusted principal. You can learn more about the principal adjustment calculations in the article: How to calculate a TIPS Inflation Adjustment.
I’m using a portfolio of Treasury Inflation Protected Securities that contains 14 government bonds from three different bond issues with a 10 year maturity. The bonds are being held in a Roth IRA account. Unlike other investments, I am actually guaranteed to beat inflation.
You can protect your savings too. Use this site to help you get going.
- Where to Buy TIPS
- How to Buy an I Bond
- I Just Want to Save My Money!
- 10 Articles about Inflation Protected Bonds
You can also get my TIPS tracking spreadsheet to help you track your TIPS.
Here’s a great video series to watch if you are interested in this investment strategy: