No. of Recommendations: 0
Hello All,

I just finished reading the book "Worry Free Investing" by Bodie & Clowes. I had a question regarding TIPS. I was looking on and noticed that recent TIPS auctions have yielded around 4.75% or so. Is this going to be the fixed rate that is paid above the increase/decrease in the CPI? So if inflation is 3%, is the TIPS going to yield 7.75%? Also, as far as taxes on TIPS, am I correct in thinking the the full amount is taxable (even the CPI adjustment)? Thank you.

Print the post  


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.