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It's also possible to obtain TIPS directly from your lender or broker. This can be far more convenient for all those investors who already have a substantial portfolio of securities at a specific money institution.
TIPS are meant to protect investors from inflation above the long term rather then act as a brief-expression hedge from soaring prices.
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While TIPS defend in opposition to inflation, the offset is often a decrease generate than bonds with related maturities.
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Some traders hold TIPS in tax-deferred retirement accounts to prevent tax problems. Nonetheless, it might be well worth contacting a tax Skilled to debate any potential tax ramifications of buying TIPS.
An index-connected bond can be a bond in which payment of income around the principal is associated with a particular price index, generally The buyer Price Index.