Category Archives: Investing in TIPS

Summary The idea: Push inflation-protected money into the future, when you will need it in retirement. Both I Bonds and TIPS are super safe investments that can be purchased with zero commissions and fees. The only risk in purchasing ‘inflation … Continue reading →

Summary News media widely reported that a 2.2% increase in Social Security benefits is likely in January 2018. How is the COLA determined and how could anyone project it in early July? We need three months of data – inflation … Continue reading →

Summary The coupon rate was set at 0.375%, so buyers got this TIPS at a discount. The inflation breakeven rate came in at 1.76%, which is attractive. Market reaction to the auction is trending negative, with yields rising and the … Continue reading →

Summary This new TIPS could have the highest real yield since January 2016, but keep an eye on yield trends – they have been falling. The current inflation breakeven rate of 1.78% makes this TIPS attractive versus nominal Treasurys. A reason … Continue reading →

Summary Both headline and core numbers for year-over-year inflation have fallen well below the Federal Reserve’s 2.0% target. Falling gasoline prices again accounted for the low June number. Used vehicle prices also have been falling. What does this mean for … Continue reading →