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 ‘inflation’
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... Tweak Your Portfolio in Case of Inflation
One of the golden rules of investing is to stay ahead of inflation. Most investments are designed to offer returns that will not be eradicated by the average amount of inflation. But there are times when inflation is anything but average. When it is higher than usual, it can eat up the returns on low-interest investments.
The variability of inflation is one of the biggest reasons why investors are advised to diversify their portfolios. But in times of high inflation, there are other measures you can take for added protection.
Here are some ideas and advice to consider when inflation...
Monday, June 13th, 2011
One of the golden rules of investing is to stay ahead of inflation. Most investments are designed to offer returns that will not be eradicated by the average amount of inflation. But there are times when inflation is anything but average. When it is higher than usual, it can eat up the returns on low-interest investments.
The variability of inflation is one of the biggest reasons why investors are advised to diversify their portfolios. But in times of high inflation, there are other measures you can take for added protection.
Here are some ideas and advice to consider when inflation... 
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