Inflation
has been growing. Rampant inflation is inevitable with our U.S.
budgetary habit. As a result, many investors are being lured to the use
of TIPS or Treasury Inflation-Protected Securities.
The investment
fails to offer enough return on your investment. Judicious use of
bonds, using duration principles will give you far better returns.
Furthermore,
TIPS owned outside a tax deferred retirement account, such as an IRA
or 401 (k), require tax payments for inflation benefits you get. and
in the year in which they occur. This applies as well in a mutual
fund, whether your investment is in or out of a tax-deferred account.
You have to closely check the fund treatments of TIPS..(See
the Earl J. Weinreb NewsHole® comments and @BusinessNewshole
tweets.)
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