1. Free of State and Local Income Taxes
2. Large Potential for Capital Gains
3. No Credit Risk
4. Low Interest Rate Risk When Interest Rates Are Already High
5. Hedge Against Inflation
6. Why Now May Be the
Best Time to Buy!!!

Table of Contents
00:00 Introduction
00:22 Fundamentals
1:08 How TIPS Are Taxed
2:34 Treasury Auctions
3:23 Interest Rates
6:02 Buying TIPS from TreasuryDirect and from Brokers
7:26 Buying and Selling in the Secondary Market
10:59 How TIPS Compares with Other Investments
13:36 Wrap-Up

Links
Treasury Bills (T-Bills): Earn 4+%, Risk-Free, Free of State and Local Taxes
I Bonds: Up to 8.19% Interest, Guaranteed, Zero Risk, Maybe Even Tax-Free!

Do NOT Buy I Bonds after October 2022; Why EDV Will Become the Best Investment!

The Commercial Book-Entry System (CBES) — TreasuryDirect
I-Bonds Aren’t the Only Way to Fight Inflation – WSJ
TIPS — TreasuryDirect
Confused by TIPS prices? Here’s a walk-through. | Treasury Inflation-Protected Securities
Treasury Inflation-Indexed Securities
TIPS Auction Rules
TREASURY INFLATION-PROTECTED SECURITIES (TIPS) Ref CPI and Index Ratios for October 2022

Topics Covered:
Treasuries
Treasury Inflation-Protected Securities (TIPS)
Investment Return
Taxation
Form 1099-OID
Example: 5-Year TIPS
Auctions of TIPS
TIPS Are Issued through Auctions by the U.S. Treasury
Who May Bid?
Minimum Bids, Minimum Multiples
Treasury Inflation-Protected Securities (TIPS) Auction Schedule
Interest Rates and Principal Adjustments
Real Rates, Nominal Rates, and Negative Real Rates
Interest Rate Is Determined by Auction
Negative Rates
Comparing TIPS to Treasuries:
Nominal Yield, Real Yield, Breakeven Inflation Rate
Historical Breakeven Inflation Rates
Official Method for Calculations
Index Rate, Adjusted Principal
TIPS Calendar of Events
TIPS Announcements
Accrued Interest
Accrued Interest + Principal Adjustment at Settlement
Buying TIPS from
TreasuryDirect and from Brokers
Buy TIPS at TreasuryDirect or Through Your Broker
Buying TIPS at TreasuryDirect
Buying TIPS at Brokers
Newly issued TIPS are only available at brokers for 1 week per month.
Treasury Inflation-Protected Securities (TIPS) Auction Schedule
TD Ameritrade Display of Available Treasuries
Buying and Selling in the Secondary Marketplace
TIPS Listings in the Secondary Market Display the Yield to Maturity on the Accrued Principal
Yield to Maturity
Bond Prices = Flat Price + Accrued Interest
Listed Market Price = Adjusted Principal
Buying in the Secondary Market
Interest Rate Risk
Price of TIPS May Decline Some More
Recent Performance of TIPS
The Secondary Market for TIPS
For All Treasuries,
Yield to Worst (YTW) = Yield to Maturity (YTM)
Secondary Listings for TIPS on TD Ameritrade
Comparing TIPS to Other Investments
Taxable Equivalent Yield for Treasuries
Exchange-Traded Funds and Mutual Funds Holding TIPS
Comparing I Savings Bonds with TIPS
Advantages of I Bonds over TIPS
Disadvantages of I Bonds over TIPS
Why Now May Be the Best Time to Buy…(read more)

HOW TO: Hedge Against Inflation

REVEALED: Best Investment During Inflation

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Treasury Inflation-Protected Securities (TIPS) have been around since 1997, but never before have they looked as promising as they do now. These bonds are backed by the US government and are specifically designed to protect investors against rising inflation. If you’re looking for a safe investment that guarantees a return above the rate of inflation, TIPS might be just the answer you’re looking for.

Inflation has been on the rise recently, with the Consumer Price Index jumping by 5% in May 2021, the biggest increase since August 2008. This sudden surge in inflation has made investors wary, as it eats into the value of their investments over time. However, this is where TIPS come in – they are designed to mitigate the effects of inflation and protect you against its harmful effects.

Unlike traditional bonds, TIPS are indexed to inflation. This means that the principal value of the bond goes up along with inflation, ensuring that you enjoy a return that is in line with the rate of inflation. When investors buy TIPS, they receive a lower fixed interest rate than traditional bonds, but the investment is protected against inflation, making it an attractive option during times of high inflation.

Moreover, because TIPS are backed by the US government, they are considered a very safe investment. They are less risky than stocks and other investments that have higher volatility. Investors who are looking for a safe, low-risk investment during these uncertain times may be attracted to TIPS as a way to balance out their portfolio.

If you’re considering investing in TIPS, now may be the best time to do so. With inflation on the rise, TIPS are likely to provide a better return than traditional bonds, as they offer an added layer of protection against the negative effects of inflation. Plus, TIPS are also tax-efficient, making them a great option for investors who want to minimize their tax burden.

In summary, TIPS provide a safe, low-risk investment option that hedges against inflation. With inflation on the rise, now may be the best time to invest in Treasury Inflation-Protected Securities. By doing so, you’ll be able to enjoy a fixed interest rate that protects your investment against inflation, all while knowing that your investment is backed by the US government.