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TIPS: Your Inflation Shield or Market Risk? | Texas News

TIPS, launched in 1997, offer a smart hedge against inflation by adjusting both interest and principal based on the CPI—making them more resilient than regular bonds over time. But they’re not without risk: their value can swing wildly with interest rate shifts, as seen during the 2013 rate spike and the 2008 financial crisis. While you can buy them individually or through ETFs, experts recommend a TIPS ladder or short-to-intermediate term funds, held for 2–6 years. For retirees or those nearing retirement, allocating 20–40% of fixed-income assets to TIPS can help preserve purchasing…

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