Om Investing for Interest 15
Treasury Inflation-Protected Securities (TIPS) are a complex instrument to understand; that's why it took me so long to write this article.
However, their premise is simple-allow the average investor to beat inflation slightly and with little risk.
If you buy and hold your TIPS, you should beat inflation over the defined period of the bond.
If you decide to sell early, you may be in a world of hurt. TIPS are not the only way to beat inflation.
However, TIPS can play an essential part in achieving your investment goals, along with other types of securities. Good Luck!
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