What are treasury inflation protected securities?

Treasury inflation-protected securities (TIPS) are U.S. government bonds that are designed to help protect investors from inflation. The principal and interest payments on TIPS increase with inflation, as measured by the Consumer Price Index. This means that the value of TIPS increases with inflation, making them a good choice for investors who are concerned about the potential erosion of their purchasing power due to inflation. TIPS are considered a low-risk investment and are often used as a way to diversify a portfolio.

The effects of interest rates are often not directly felt but play out over a long time as valuations of real-estate and other assets adjust.

At Horizon65, we created a mobile app that enabled you to check the effect of high interest rates on your savings and to simulate potential investments that can defend against it.

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