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TIPs to Protect Yourself from Future Inflation

Rory,

According to Morningstar's columnist Sue Stevens and what I've been told by other investment analysts/advisors, Treasury Inflation-Protected Securities (TIPS) have a fixed interest rate, but investors’ principal adjusts along with inflation rates. Because interest paid from TIPS is taxable, it’s generally best to hold them in tax-deferred accounts.

Naturally, there's exceptions to every rule, but this is the guideline that I've been following. I'd be very interested in learning if the investment landscape has changed in this respect...