TIPS vs I-Bonds

Discussion of the Cash portion of the Permanent Portfolio

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MachineGhost
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TIPS vs I-Bonds

Post by MachineGhost »

If you are contemplating buying some government inflation-adjusted bonds, you should compare TIPS with Savings I Bonds to see which is better at the present time.  It's largely dependent of the relative value of fixed interest between the two as well as your expectations for future tax rates and inflation rates.

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magneto
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Re: TIPS vs I-Bonds

Post by magneto »

Thanks for the information.  Remember I Bonds are cash, whereas TIPS are bonds and therefore if located anywhere in the PP would be in the Bond allocation.  However the last time I mentioned TIPS I was told in no uncertain terms they have no place in the PP!
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AdamA
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Re: TIPS vs I-Bonds

Post by AdamA »

magneto wrote: However the last time I mentioned TIPS I was told in no uncertain terms they have no place in the PP!
I think most PP users would probably agree that short term TIPS are probably okay for a portion of your cash position.  It's when people try to replace gold with TIPS that can get into trouble.
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