U.S. Inflation-Protected Bonds: TIPS vs. I-Bonds for Capital Preservation
As inflation continues to erode purchasing power, investors are turning to U.S. government-backed inflation-protected bonds as a defensive strategy. Treasury Inflation-Protected Securities (TIPS) and Series I Savings Bonds (I-Bonds) stand out as the primary options, each with distinct mechanics and tax implications.
TIPS offer real yields, guaranteeing returns above inflation, while I-Bonds combine a fixed rate with an inflation-adjusted component. The choice between them hinges on whether an investor prioritizes nominal yield (I-Bonds) or inflation-adjusted certainty (TIPS).
With no direct cryptocurrency angle, this analysis underscores traditional finance's tools for hedging against macroeconomic instability—a contrast to crypto's volatility-driven opportunities.
