TIPS (Treasury Inflation-Protected Securities)
InvestingU.S. government bonds where the principal adjusts with inflation, providing a real rate of return.
Example
Example: Consider an investor building a $100,000 portfolio. TIPS (Treasury Inflation-Protected Securities) — u.s. government bonds where the principal adjusts with inflation, providing a real rate — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.