Dec. 4 at 8:39 PM
$VTIP The next set of U.S. government direct auctions of Treasury inflation-protected securities, known as TIPS, start in January, and if you’re retired, you should be planning a strategy for your cash on hand. That might mean holding off a few weeks or jumping in right now, depending on your situation.
“There’s no immediate need before year-end,” said Jonathan Dane, founder at Defiant Capital Group in Pittsburgh, who is also a certified financial planner (CFP) and chartered financial analyst (CFA). “But if you’re rebalancing and you have the liquidity now, it’s not a bad time to buy TIPS in the secondary market.”
If you followed the population spike of Series I Bonds at the height of inflation, TIPS work similarly — a flat fixed rate plus an adjustable 6-month inflation rate. The main difference is in their resale value. I bonds are not especially liquid.
