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Are Treasury Inflation Protected Securities (TIPS) Right for Your Retirement Account?

Spinelli Financial Advisors | August 2021

Why might you consider adding Treasury Inflation-Protected Securities (TIPS) to your fixed income portfolio?

Why might you consider adding Treasury Inflation-Protected Securities (TIPS) to your fixed income portfolio? And what types of investing environments and accounts are most conducive to holding TIPS? TIPS shine during periods of higher inflation than anticipated. With the current regulatory environment focused on combatting the COVID-19 pandemic, inflation rates have risen steeply when compared to the recent past[1].

Why might TIPS be attractive investment vehicles in the near-term?

Our view is that current stimulus measures created a natural buoyancy for inflation that will not dissipate in the near term. TIPS, which adjusts based for anticipated price changes, may prove to be an integral part of a well-diversified retirement portfolio due to the ability to help offset higher-than-anticipated inflation.

We can help

If you would like to discuss your current tax, investment, or retirement plans and evaluate weather TIPS or another investment is suitable for you, please feel free to contact us through our website or give us a call at 1-732-564-9404.

About the Author | Spinelli Financial Advisors

We are a fiduciary financial advisor based in Warren, NJ providing objective, fee-only financial planning, investment, and tax services. We strongly value lasting relationships with our clients and their families so we can focus on their goals and objectives.

[1] U.S. Bureau of Labor Statistics. “Consumer prices up 5.4 percent in 12 months ended July 2021.”

 

Investment in securities always involves the risk of loss. Past performance is never a guarantee of future returns. Information provided in blog posts is believed to be accurate at the time of posting and is not considered investment advice.


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