Michael J Porro & Company

Financial Advisors, LLC

180 Old Tappan Road, Old Tappan, NJ 07675-7052

Phone: 201-768-0218

Fax: 201-768-6487

Website: porrofinancialadvisors.com

July/August 2018

Investing in TIPS

Article Image

Tips, an acronym for Treasury Inflation- Protected Securities, are fixed income investments designed to provide a hedge against the eroding effects of inflation. Issued by the U.S. Treasury and backed by the full faith of our federal government, TIPS are available directly at https://www.treasurydirect.gov. You can also find them in some mutual funds.

How They Work
Like any bond, TIPS are guaranteed when you hold them until maturity. Because they are tied to the Consumer Price Index (CPI), which measures inflation, these securities feature returns that rise during inflation, but decrease during deflation, meaning you can also lose money with them.

No Guarantees
There are no such guarantees for bond funds that feature TIPS. They can lose value when bond fund managers sell them before maturity.

You can buy TIPS directly for as little as $100 for terms of five, 10, and 30 years. Interest and increases in the principal are subject to federal tax but exempt from state and most local income taxes.


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Michael J Porro & Company and LTM Client Marketing, Inc. are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.