Industry story
TIPS Now Paying 2–3% Real Return Above Inflation
Treasury Inflation-Protected Securities (TIPS) — U.S. government bonds whose principal adjusts with inflation — are currently yielding a real (after-inflation) return of 2–3%, depending on the maturity chosen. That means if inflation runs at 3%, the total nominal return would be 5–6%. The real return is guaranteed by the U.S. Treasury. Howard Schwartz, writing at HumbleDollar, argues this level of real yield is unusually high and suggests retirees who hold bonds in their portfolios look into TIPS before rates change. TIPS can be purchased through a brokerage account, a TreasuryDirect account, or via ETFs and mutual funds.
Full analysis
Treasury Inflation-Protected Securities (TIPS) — U.S. government bonds whose principal adjusts with inflation — are currently yielding a real (after-inflation) return of 2–3%, depending on the maturity chosen. That means if inflation runs at 3%, the total nominal return would be 5–6%. The real return is guaranteed by the U.S. Treasury. Howard Schwartz, writing at HumbleDollar, argues this level of real yield is unusually high and suggests retirees who hold bonds in their portfolios look into TIPS before rates change. TIPS can be purchased through a brokerage account, a TreasuryDirect account, or via ETFs and mutual funds.
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