RBS 123: How and Why To Build A TIPS Ladder In Retirement
Not long ago investors had to pay the U.S. government for the privilege of owning TIPS. The real yields, that is the yield after factoring in inflation, were negative. Last year, as a phoenix rising, real yields broke above 0%. Today the real yield on 10-year TIPS is about 2.50%. This offers some intriguing options for those in or near retirement. Treasury Inflation-Protected Securities, or TIPS for short, are U.S. government bonds whose principal amount adjusts for inflation. They are as cl...