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TIPS vs I-Bonds
Posted: Fri Dec 14, 2012 2:29 am
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.
http://www.analyzenow.com/Free%20Progra ... -21-09.xls
Re: TIPS vs I-Bonds
Posted: Fri Dec 14, 2012 4:47 am
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!
Re: TIPS vs I-Bonds
Posted: Fri Dec 14, 2012 12:39 pm
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.