Explore TIPS: A Practical Guide to Investing in Treasury Inflation-Protected Securities

March 29, 2010 by TFB

Long time readers know I have a special interest in TIPS, the inflation indexed bonds. At one of my annual reader surveys, a reader asked why I wrote about TIPS all the time. I like TIPS because they are truly unique – the only investment with a guaranteed return above inflation.

I wrote everything I know about TIPS into a book called Explore TIPS: A Practical Guide to Investing in Treasury Inflation-Protected Securities. I published the book this month.

The book is exactly what the title says: a practical guide to investing in TIPS. Everything in the book comes from my actual experience in investing in TIPS myself. It takes a beginner who knows nothing about TIPS to knowing everything necessary for investing in TIPS. If you are a regular reader of this blog, you know my style. I leave no stone unturned. You will not find that level of details anywhere else. Please click here for a detailed table of contents.

The book is available at Amazon.com for $14.95. It’s eligible for free shipping if you combine it with other items and make your order over $25. I also sell it in PDF format for $9.95. A PDF is handy for uploading to an e-book reader such as Kindle.

If you noticed I posted less frequently to this blog in the last few months, it’s because I had been working on this book. I can tell you from this experience that writing a book is a lot of work. If I do it only for money, it’s totally not worth it. I wrote the book because I really want others to understand TIPS.

If you buy the book, thank you. I would also really appreciate it if you write an honest review on Amazon, whether you end up liking the book or not. If you read the book and you still have questions, let me know via my contact form or leave them in the comments to this post. There’s always room to address the questions and comments in the next revision.

Software picked, likely related posts:

Keywords:
Filed under: News | Leave a comment

Comments

10 Comments on Explore TIPS: A Practical Guide to Investing in Treasury Inflation-Protected Securities

  1. Investor Junkie on March 29, 2010 | permalink
     

    “I leave no stone unturned.”

    Do you discuss the measuring of the CPI-U? Without question, TIPs will beat the way the government measures inflation. The question is can you trust (for many reasons) it is accurate?

  2. DS on March 29, 2010 | permalink
     

    Congrats on the new book.

    As someone who has decided that VG’s TIPS fund is the easiest way to invest in this asset class, I look forward to reading chapter 3 on funds and ETFs.

    Do you address in the book, or have any thoughts on, whether the ETF (ticker: TIP) is a better way to invest in this asset because it is passively managed, than the active but low cost VG TIPS fund?

    Thank you and keep up the great work.

  3. simplesimon on March 29, 2010 | permalink
     

    I’m looking forward to checking this book out. Buying through the BH Amazon link no less!

  4. TFB on March 29, 2010 | permalink
     

    DS – Yes, the iShares ETF TIP is included in Chapter 3. It’s about the same as the Vanguard mutual fund.

  5. TFB on March 29, 2010 | permalink
     

    Investor Junkie – I included the CPI-U being lower than the experienced inflation as a risk factor.

  6. Wai Yip Tung on March 31, 2010 | permalink
     

    Congratulations on your work! I’m sure this will be a really informative book without all those non-sense.

    Still no real name on a published book? This baffles me.

  7. Mike on April 8, 2010 | permalink
     

    This seems like a contrarian sign; the masses tend to buy near the top and sell at the bottom So as soon as the masses are thinking TIPS are the way to go, pushed by books like this, expect them to tank. See, for example, the article at Vanguard https://personal.vanguard.com/us/insights/article/bear-flattening-bond-surprise-04012010 As they write “What about investing in Treasury Inflation-Protected Securities (TIPS)? For some, TIPS may appear to be a safe harbor given fears that global demand for commodities and growing federal deficits could spark inflation. But this strategy also has potential hazards, Mr. Volpert said.

    TIPS are coming off a long rally that drove their yields significantly lower than those of nominal Treasury bonds. The difference between those yields—a key indicator of risk and relative liquidity—is now higher than the consensus forecast for inflation. To bring the yields back into alignment, prices of TIPS will need to fall and their yields to rise. In addition, inflation expectations are an important driver of TIPS’ performance. If the Fed raises rates and inflation expectations fall, TIPS can be expected to underperform nominal Treasuries.”

  8. TFB on April 8, 2010 | permalink
     

    Mike – So you think TIPS are overvalued at this time. That’s fine. Market conditions change, sometimes very fast. When the prices fall and the yields rise, people still need to understand how TIPS work and be ready to take advantage of them.

  9. Ted Valentine on April 13, 2010 | permalink
     

    Long time reader, some time commenter. Just wanted to say congrats on the book.

  10. Jehnavi on July 18, 2010 | permalink
     

    The difference between those yields—a key indicator of risk and relative liquidity—is now higher than the consensus forecast for inflation. To bring the yields back into alignment, prices of TIPS will need to fall and their yields to rise. In addition, inflation expectations are an important driver of TIPS’ performance. If the Fed raises rates and inflation expectations fall, TIPS can be expected to underperform nominal Treasuries.

Tell me what you're thinking, but please don't spam. See comments moderation policy.