The Most Important TIP You’ll Ever Get

Hey There Income Hunters,


Today, I’m going to show you a risk-free way to protect your wealth and your quality of life from inflation …


Because as former British Prime Minister Margret Thatcher said …


The lesson is clear. Inflation devalues us all.”


Very true, Maggie. Very true.


Usually!


However


Inflation-protected securities were invented way back in 1780. (In the USA, might I add.)


These incredible securities were developed to protect American soldiers from a decline in their pay during the Revolutionary War…


This solution preserved their quality of life and will do the same for you …


So what is this ONE fixed income security you MUST own in your portfolio?


The One

Here’s the answer …


iShares TIP, the Treasury Inflation Protected Securities (TIPS) Bond ETF


Treasury Inflation Protected Securities (TIPS) are not exposed to inflation risk since the principal invested and the interest received are adjusted higher with inflation measured by the Consumer Price Index (CPI).


That is to say … any income lost due to inflation is recaptured! 


USA & Value to Stay

The US is the world’s largest issuer of these invaluable, inflation-linked bonds. 


With TIP ETFs that track underlying TIPS you can be confident $1 today could buy the same amount of goods in the future.


That’s the greatest value of owning TIPS …


No matter what happens, you preserve your purchasing power … because as the cost of goods goes up, so, too, does the principal amount of your TIP ETF.


TIP ETFs in Action 

Let me be clear …


You gain protection from inflation by owning a stock via iShares TIP ETFs.  


They are extremely liquid and were designed with the help of highly successful fund managers who use them extensively… 


Below is an illustration of how the TIP ETF rose in price once the Fed began printing money after the 2008 financial crisis… 


 

Fundamental Features of the iShares TIP Bond ETF 

  • Investment Objective

    • The iShares TIPS Bond ETF seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds. 

  • Management Fees = .19% 

  • Principal Investment Strategies  

    • The Fund seeks to track the investment results of the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS), which measures the performance of the inflation-protected public obligations of the U.S. Treasury, commonly known as “TIPS.”

Questions about TIPs? Email me at wgriffo@optionpit.com


How It Works: CPI Index Adjustments


The underlying TIPS securities are adjusted on a daily basis by the CPI Index Ratio. 

 

The underlying also pay sinterest every six months, based on the fixed coupon rate of interest. 


And as rates rise, the interest component provides bonus income.

 

For you it’s a win-win … you collect for inflation and interest!! 

 

Bring It Home

Now, you talk about an awesome gift for your family members who need to preserve their retirement nest egg? 


This is virtually risk free because the government must hold all CPI adjustments in a special account to ensure you get paid at maturity …


And the TIP ETF price trend is looking great. Check it out …



Hey and maybe for my special TIP you can send me a few shares since I’m almost old enough to retire!


LOL, until next time …


Live and Trade With Passion My Friends,


Griff

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