The financial media often comments how TIPS funds can legitimately inflate yields, in accordance with Securities and Exchange Commission rules. It’s easy to be hoodwinked into believing you are getting more than you are, while enjoying benefits of inflation protection.
I have never been a fan of TIPS. I have always explained its shortcomings on the return you get and tax detractions. And how you can avoid inflation’s effect, instead, on fixed income investments, with proper use of duration principles.
In fact, most investors and those in the financial media are in the dark about the use of duration principles. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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