For individuals seeking an investment that provides guaranteed inflation protection and portfolio diversification, it is worthwhile to take a good look at Treasury Inflation Protected Securities (TIPS). As of August 2002, the total value outstanding has grown to over $150 billion and investor interest continues to increase. TIPS now represent more than 6% of the $2.3 trillion in total tradable U.S. Treasury notes and Bonds.
This seminar discussed the results of a recent study of inflation bonds by Brett Hammond, Director, Portfolio Studies, TIAA-CREF. In particular the seminar examined:
- the differences between TIPS and regular bonds
- the portfolio benefits of TIPS
- the improvement of income protection in retirement.
