Skip to main content
No. of Recommendations: 1
a quote from the article:

""Many retirees and soon-to-be retirees nevertheless are avoiding TIPS these days because their stated yields are negative. The 10-year TIPS, for example, currently is quoted with a yield of minus 0.65%. That headline yield triggers loss aversion among most of us, keeping all but the most fearless from even considering TIPS.

But retirees are being misled if they think of these negative yields in nominal terms. They instead are real yields—yields relative to inflation. So a better way to think of the current TIPS yields is that your return over the next 10 years will be 0.65% below whatever the CPI’s rate of growth will be. For example, if the CPI increases 10% annualized over the next decade, your return would be 9.35% annualized--guaranteed.""

And a link to it:
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.