Financial community gurus recommend TIPS with the first vestige of increasing interest rates. They’re bonds issued by the federal government through a bank, broker, or the Treasury, for five, ten and twenty year maturities. They also can be bought in the form of mutual funds and Exchange Traded Funds (ETFs).
TIPS’
values grow to the extent of inflation. They are not actually part of
the investment essential tools I recommend.
For
several reasons I have repeatedly explained in the past. Their
function can be accomplished better with the use of proper "duration"
principles and their implementation. Furthermore, they sell at a
premium to value and their inflation advantages are taxable. ( See
the Earl J. Weinreb NewsHole® comments.)
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