TIPS, are they for you? Treasury inflation-protected securities, or TIPS, are one answer to the inflation risk problem that all bond investors face. All investors, particularly long-term investors, can lose a substantial portion of the purchasing power of their invested funds due to a gradual increase in price. TIPS can help prevent this from [...]
What is the risk when using US Treasury Bills, US Treasury Notes, and US Treasury Securities as an investment vehicle? The danger is inflation.
US Treasuries are the safest possible place to invest your money. There is nothing on planet earth safer. Treasury bonds are issued and backed by the federal government, the full faith and credit of the United States Government. The advantage is safety; the disadvantage is the yield you may earn can be lower than other investment options. The question to ask is simple, is the lesser yield still sufficient for your needs?