Home » Forums » Financial Planning » Investing

TIPS Versus I-Bonds

POSTED Tue, 01/26/2010 - 15:00 | POSTED BY Anonymous

Can someone please explain the basic differences between treasury inflation protected securities and I-bonds?

‹ How to Hedge Life-Cycle Investing ›
Key Phrases:

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

tom wrote on Wed, 01/27/2010 - 07:53:

There are technical differences that affect how rates of inflation are built into the yield of the securities.

Also, there is a difference in the frequency with which interest accrues (monthly for I-Bonds and semi-annual for TIPS).

There is a secondary market for TIPS but not for I-Bonds.

Both securities are exempt from state and local taxes but not federal taxes. I-Bond earnings may be exempt from federal taxes if proceeds are used for educational purposes.

tom wrote on Wed, 01/27/2010 - 19:39:

Actually, here is a very good article on the differences: http://www.publicradio.org/columns/marketplace/gettingpersonal/2010/01/i...

As mentioned in this article, a great book on the topic is "Worry Free Investing" by Zvi Bodie.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Annuity Calculator
Retirement Income Industry Association Spring Conference 2012

Trending Now

Find Financial Advisors

Click below to find financial advisors who provide annuities and retirement planning services. You may also add or edit a financial advisor profile.
find advisors

Find Companies

Click below to find companies that provide products and services in the area of annuities and retirement planning. You may also add or edit a company listing.
find companies