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What are treasury inflation protected securities (TIPS) and why should someone hold them?
Season 7 Episode 4
Are you concerned about inflation eroding your savings? This episode dives into treasury inflation-protected securities (TIPS), a powerful investment tool designed to help safeguard your money from the damaging effects of inflation. Ralph Estep, Jr. shares insights on how these government-backed bonds can protect your purchasing power while offering a steady income stream. He highlights the importance of saving wisely and provides a compelling story about a teacher named James, who learned the hard way about the pitfalls of traditional bonds during inflationary times. Join Ralph as he explores practical steps to incorporate TIPS into your investment strategy, helping you achieve financial success while staying true to your values.
You can read the blog article here
Watch the video in Rumble here
Podcast Timestamps:
00:00 Episode Overview
01:40 Listener Question: How to Safeguard Retirement Savings
03:12 Biblical Perspective on Wealth Preservation
03:54 Real Life Story a Client
05:26 Understanding Treasury Inflation Protected Securities (TIPS)
06:18 Benefits and Challenges of TIPS
13:43 Community and Live Show Invitation
16:45 Action Items and Conclusion
Takeaways:
- Treasury Inflation-Protected Securities (TIPS) act as a hedge against inflation by adjusting principal value with rising inflation, helping preserve purchasing power.
- It is essential to consult with a financial advisor before investing in TIPS to ensure they fit your unique financial situation and goals.
- Investing in TIPS provides a steady income stream through semi-annual interest payments, supplementing retirement savings effectively.
- While TIPS are secure investments backed by the U.S. government, they typically offer lower interest rates than traditional bonds due to their inflation protection features.
- Be aware that you may owe taxes on phantom income from TIPS, which requires careful planning for tax payments on inflation adjustments.
- Consider allocating a portion of your investment portfolio to TIPS as a strategy for enhancing financial security during inflationary periods.
Links referenced in this episode:
- Ask Ralph Insiders Community https://mailchi.mp/askralph.com/group
- Ask Ralph Show Live https://askralphpodcast.com/live
- What is your question that you would like to ask Ralph? Send Your Question here: https://justaskralph.com/
- Join our email list and get a free copy of “Mastering Your Finances” at https://askralph.com/
- treasurydirect.gov
Companies mentioned in this episode:
- TreasuryDirect.gov
- Saggio Accounting Plus
- Ask Ralph Media, Inc.
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Published on 11 months, 2 weeks ago