Not long ago investors had to pay the U.S. government for the privilege of owning TIPS. The real yields, that is the yield after factoring in inflation, were negative. Last year, as a phoenix rising, real yields broke above 0%. Today the real yield on 10year TIPS is about 2.50%. This offers some intriguing options for those in or near retirement.

Treasury InflationProtected Securities, or TIPS for short, are U.S. government bonds whose principal amount adjusts for inflation. They are as close a sure thing as an investor can get. Of course, there is no free lunch. What an investor gives up with TIPS is the possibility of better returns with nominal bonds (should inflation end up lower than expected) or with more risky assets such as stocks. For many retirees, however, risk is a fourletter word.

So let’s explore two TIPS ladder strategies that retirees might want to consider. We'll walk through building a 30year TIPS ladder and a 5year TIPS ladder.

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Video Resources
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Real Yields: https://home.treasury.gov/resourcece...
Nominal Yields: https://home.treasury.gov/resourcece...
Breakeven Inflation Rate: https://fred.stlouisfed.org/series/T1...
TIPS Ladder Tool: https://www.tipsladder.com/
BlackRock TIPS ETFs: https://www.ishares.com/us/strategies...
BlackRock Bond Ladder Tool: https://www.ishares.com/us/resources/...

#TIPS #bondladder #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and DadThe Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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