TIPS vs I-Bonds: How Do TIPS Protect Against Inflation? And How Are They Different From I-Bonds?
TIPS are issued by the US Treasury and are indexed to inflation in order to protect investors from a decline in purchasing power of their money.
They have a fixed inflation rate and a principal that is adjusted according to the changes in the CPI-U
This video explains how they work, their advantages & disadvantages, and how they compare to I-bonds.
WATCH our video explaining how I-Bonds work at https://youtu.be/efDIvlbgwDo
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