![Inflation Protected Securities Explained [TIPS & I Bonds]](https://i.ytimg.com/vi/aPU5z-NEc_w/maxresdefault.jpg "Inflation Protected Securities Explained [TIPS & I Bonds]")
Do TIPS and I Bonds provide good protection against inflation? We look at Vanguard research, who these are good for, TIPS vs I Bonds, and how to buy them.
#TIPS #IBonds #InflationProtectedSecurities
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Target Date Funds: Are They Right For You?
Three-Fund Portfolio [The BEST Portfolio!]
Bond Fund Strategy [Hands-On Guide]
Tax-Efficient Asset Allocation [5 Steps to Avoid Taxes]
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— Outline
00:00 Intro
01:34 Consumer Price Index
We discuss how inflation is measured and look at historical inflation. Recently inflation has been low, but there have been years with over 15% inflation!
02:26 Risk of Unexpected Inflation
The primary risk from inflation comes from unexpected inflation. I summarize a Vanguard research paper that evaluates how various asset classes protect against inflation. I then share which type of investor I think is most affected, and why it could make sense to seek inflation protection. I discuss why I think short term TIPS are one of the best options for the investor seeking inflation protection.
06:48 TIPS vs I Bonds
I walk through the details of TIPS and I Bonds. These are both bonds sold by the US Treasury that are intended to protect investors against inflation.
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Disclaimer: I am not a financial advisor. My videos are for educational purposes and are my opinions. You should seek advice from a professional advisor or perform your own research. There is no guarantee you will be successful following my opinions….(read more)
LEARN MORE ABOUT: Treasury Inflation Protected Securities
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Thanks for watching! Here are some follow-up videos:
Target Date Funds: Are They Right For You? https://youtu.be/SO5P4mfWxiU
Three-Fund Portfolio [The BEST Portfolio!] https://youtu.be/R81Z-obeB3s
Bond Fund Strategy [Hands-On Guide] https://youtu.be/Al2DOtLS00Q
Good info, but it would have been great to see a comparison in returns between, say, $10K invested in TIPS and $10K invested in an I-Bond, in both an inflationary and deflationary environment.
I subscribed, liked the video and added a thumbs up. Thank you for this video!
Good job Nick
Best video on TIPS so-far as far as I’m concerned, very well explained – Nick Doyle!
can non American can buy ibond?
I've been scouring the internet for a couple years and have found very few that give you the facts so plainly without dumbing down the information. Thanks, you've earned my subscription.
For those who haven't opened an account, do you recommend that we buy this month or next month in November? Thank you so much.
Hi Nick. Thank you so much for your video. I have a question for I bond. If I invest $10,000 before 10/31, when will I start earning the new rate of 7.12%? Thank you.
So I shouldn't move my s&p stock to inflation protected bonds?
If inflation rises, wouldn't my s&p stock lose money?
While inflation protected bonds would grow correct, while inflation rises….???
Tia
Thanks
I bonds seem like good deal as opposed to today's cd rates. What do you think about buying Ibonds for cash you have in cds and online savings accounts. If you buy limit this year. and then buy more in subsequent years does this make sense for 3-5 year plan? Whats worse case scenario? Deflation? Then pull out and take the 3 month interest penalty?
Great video!
Excellent video Nick; thanks for posting it. Very informative and I'm sure some investors will find these types of securities indicated for their portfolios, possibly 10% to 17% of the portfolio. Very informative. I had no background in TIPS until I listened to your video; thanks again so much.