Tips on TIPS and I-Bonds : Using inflation-indexed securities in your portfolio.

Although they initially met with a tepid reception several years ago, TIPS (Treasury Inflation-Protected Securities) and I-Bonds are finding a place in more and more portfolios. Each has a component that offers inflation protection. And even if we find ourselves in a deflationary environment instead of facing inflation, at least you will always get back the face value of the bond, and interest can never fall below zero.

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Sue Stevens, CPA, CFP, MBA, and CFA Charterholder, runs her own financial planning firm, Stevens Portfolio Design, and manages over $100 million in assets.
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Both TIPS and I-Bonds have a low correlation with other asset classes. In other words, they don't behave like most other bonds or stocks. That means they can be used to diversify almost any type of portfolio.

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Tips on TIPS and I-Bonds : Using inflation-indexed securities in your portfolio.

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