Inflation Protected Securities Explained [TIPS & I Bonds]
Do TIPS and I Bonds provide good protection against inflation? We look at Vanguard research, who these are good for, TIPS vs I Bonds, and how to buy them.
#TIPS #IBonds #InflationProtectedSecurities
Vanguard Research Paper: https://www.vanguardinvestments.se/do...
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--- Outline
00:00 Intro
01:34 Consumer Price Index
We discuss how inflation is measured and look at historical inflation. Recently inflation has been low, but there have been years with over 15% inflation!
02:26 Risk of Unexpected Inflation
The primary risk from inflation comes from unexpected inflation. I summarize a Vanguard research paper that evaluates how various asset classes protect against inflation. I then share which type of investor I think is most affected, and why it could make sense to seek inflation protection. I discuss why I think short term TIPS are one of the best options for the investor seeking inflation protection.
06:48 TIPS vs I Bonds
I walk through the details of TIPS and I Bonds. These are both bonds sold by the US Treasury that are intended to protect investors against inflation.
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Disclaimer: I am not a financial advisor. My videos are for educational purposes and are my opinions. You should seek advice from a professional advisor or perform your own research. There is no guarantee you will be successful following my opinions.