Invest in TIPS to protect against inflation and secure your retirement income

  • Investing in TIPS (Treasury inflation-protected securities) can provide guaranteed cash flow and protection against inflation
  • Building a TIPS ladder can create a staggered portfolio of TIPS that mature at regular intervals
  • Real rates on TIPS have surged and are more attractive than they’ve been in over a dozen years
  • TIPS make the most sense when there’s the possibility of higher-than-expected inflation
  • BlackRock’s iShares and tipsladder.com offer options for building a TIPS ladder
  • TIPS should be part of a diversified retirement portfolio, not the whole thing

Investing in Treasury inflation-protected securities (TIPS) can provide retirees with a guaranteed cash flow of more than 4% off their retirement portfolio, regardless of market performance or inflation. By building a TIPS ladder, investors can create a staggered portfolio of TIPS that mature at regular intervals, ensuring a predictable inflation-adjusted cash flow. Real rates on TIPS have surged, making them more attractive than they’ve been in over a dozen years. TIPS make the most sense when there’s the possibility of higher-than-expected inflation, which is a concern given the current record-high U.S. deficits. Building a TIPS ladder can be done through options like BlackRock’s iShares or tipsladder.com. However, it’s important to remember that TIPS should be part of a diversified retirement portfolio, not the whole thing.

Factuality Level: 7
Factuality Justification: The article provides information about Treasury inflation-protected securities (TIPS) and how they can provide guaranteed cash flow and outperform inflation. It explains the concept of TIPS and how they work. The article also mentions the possibility of higher-than-expected inflation and provides options for building a TIPS ladder. Overall, the information provided seems accurate and objective, without any obvious bias or misleading information. However, it could benefit from more in-depth analysis and discussion of potential risks and drawbacks of investing in TIPS.
Noise Level: 7
Noise Justification: The article provides information on Treasury inflation-protected securities (TIPS) and how retirees can use them to generate guaranteed cash flow. It explains the concept of TIPS and their benefits compared to traditional Treasuries. The article also mentions the possibility of higher-than-expected inflation and provides resources for building a TIPS ladder. However, it lacks scientific rigor and intellectual honesty as it does not provide data or evidence to support the claims made. Additionally, it does not explore the potential risks or drawbacks of investing in TIPS. Overall, the article contains some useful information but lacks depth and analysis.
Financial Relevance: Yes
Financial Markets Impacted: Treasury inflation-protected securities (TIPS)
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the potential benefits of investing in TIPS, which are inflation-protected securities issued by the Treasury. It provides information on how retirees can generate guaranteed cash flow and mentions the current attractive real yields on TIPS. However, there is no mention of any extreme events or their impact.
Private Companies: Wealth Logic,BlackRock,Vanguard,Fidelity,Charles Schwab
Key People: Allan Roth (Certified Public Accountant and Founder of Wealth Logic), Collin Martin (Fixed Income Strategist at Charles Schwab)

Reported publicly: www.marketwatch.com