One of the most basic tenets of investing is that U.S. Treasury bonds are some of the safest investments one can make. They’re backed by the federal government, and they are practically guaranteed not to lose value. But when inflation rises, they can’t always keep up, and that means you could still come out behind in terms of buying power.
Treasury Inflation-Protected Securities, or TIPS for short, offer a solution to this dilemma. They are Treasury notes and bonds as well, but the principal and interest are indexed to the inflation rate. In effect, they’re inflation-proof. But that doesn’t... Articles Tagged ‘TIPS’
Should You Be Buying TIPS Now?
One of the most basic tenets of investing is that U.S. Treasury bonds are some of the safest investments one can make. They’re backed by the federal government, and they are practically guaranteed not to lose value. But when inflation rises, they can’t always keep up, and that means you could still come out behind in terms of buying power.
Treasury Inflation-Protected Securities, or TIPS for short, offer a solution to this dilemma. They are Treasury notes and bonds as well, but the principal and interest are indexed to the inflation rate. In effect, they’re inflation-proof. But that doesn’t...
Wednesday, September 7th, 2011
One of the most basic tenets of investing is that U.S. Treasury bonds are some of the safest investments one can make. They’re backed by the federal government, and they are practically guaranteed not to lose value. But when inflation rises, they can’t always keep up, and that means you could still come out behind in terms of buying power.
Treasury Inflation-Protected Securities, or TIPS for short, offer a solution to this dilemma. They are Treasury notes and bonds as well, but the principal and interest are indexed to the inflation rate. In effect, they’re inflation-proof. But that doesn’t... What are TIPS?
You've probably heard about Treasury Inflation-Protected Securities (TIPS). They are treasury bonds that adjust their interest and principal payments with inflation. TIPS will likely become much more popular with the perceived inflation risk that may loom in the future.
Like other Treasury securities, TIPS pay interest every six months and repay the total principal amount when they mature. The difference is that TIPS' principal value increases automatically based on the inflation rate as measured by the Consumer Price Index (CPI). So therefore when the CPI rises, the principal value of the TIPS also increases. Interest payments also rise because the...
Wednesday, March 10th, 2010
You've probably heard about Treasury Inflation-Protected Securities (TIPS). They are treasury bonds that adjust their interest and principal payments with inflation. TIPS will likely become much more popular with the perceived inflation risk that may loom in the future.
Like other Treasury securities, TIPS pay interest every six months and repay the total principal amount when they mature. The difference is that TIPS' principal value increases automatically based on the inflation rate as measured by the Consumer Price Index (CPI). So therefore when the CPI rises, the principal value of the TIPS also increases. Interest payments also rise because the... 
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