How do tips protect you from inflation?

That’s a great way to beat inflation. Treasury Inflation-Protected Securities ( TIPS) are designed to protect your investment from rising prices. The U.S. Treasury adjusts the par value of TIPS each year to keep up with inflation. This boosts your interest payments, and it also may deliver some additional appreciation from inflation-adjustments.

What are 'inflation-proof' investments?

Today, we're going to examine nine "inflation-proof" investments – a collection of stocks,exchange-traded funds (ETFs) and other assets that can help fortify your portfolio from inflation's potential drag on the broader stock market.

What are Treasury Inflation-Protected Securities (TIPS)?

Treasury inflation-protected securities (TIPS), a type of U.S. Treasury bond, are indexed to inflation in order to explicitly protect investors from inflation. Twice a year, TIPS payout at a fixed rate. The principal value of TIPS changes based on the inflation rate, and so the rate of return includes the adjusted principal.