Inflation

People love to give financial tips, but taking them can be risky. There are, however a different kind of TIPS that can have a place in many portfolios: Treasury Inflation Protected Securities. So let's take look at some tips about TIPS.

What are TIPS?

Does anyone else remember those gold prospector commercials that were all over late-night TV about five years ago?  They gave you a green pan for sifting and a booklet that gave you great places to look all across the country.  Supposedly, with those two items in hand, you were set for getting rich! 

Once again, gold fever has taken hold.  The only difference is that it’s not just the outdoorsy-type getting in on the action.  With prices tripling over the last five years, everyone seems to be seeing gold.

Why Gold?

We've talked before about the different types of bonds. One of the most popular are federal government bonds, commonly called treasury bonds or treasuries. These can be a useful investment tool, but they are not without risks.

What's Good About Treasuries?

If you've been watching the financial news lately, you've probably not found it overly comforting. Among the many threats we hear about is inflation. 

As Americans struggle through what we hope is the tail end of the “Great Recession”, we hear the terms “inflation” and “deflation” often.  For many people, these terms mean little beyond the definitions of “a rise in general prices” and “a fall in general prices”, respectively.  In many ways however, inflation and deflation are two of the biggest drivers for your investment decisions. How, then, does inflation and deflation really affect our families and finances?

Inflation