Category Archives: Investing in TIPS

Summary Returns for this new TIPS will slightly lag inflation over the next five years. The negative yield is an omen that the markets see a troubled economy ahead. The inflation breakeven rate came in at 1.82%, a little higher … Continue reading →

Summary Buy before May 1 and get a higher variable rate; buy after May 1 and possibly get a higher fixed rate. Waiting will cost you short term, and it might take about 4 years to break even. But I … Continue reading →

Summary Real yields have declined sharply in recent days, dropping the 5-year yield to 0.03%. When the 5-year TIPS yield approaches zero, I Bonds and bank CDs become attractive alternatives. Inflation expectations have been declining over the last month, even … Continue reading →

Summary At the May 1 reset, the I Bond’s variable rate will fall from 2.76% to 1.96%. We don’t know yet what the new fixed rate will be. Will it rise to 0.1%? Still possible. Should you buy I Bonds … Continue reading →

Summary Inflation report on April 14 will set the I Bond’s six-month variable rate, taking effect May 1. Right now, it looks like the new six-month variable rate could be lower than the current 2.76%. However, it’s possible the May … Continue reading →