Treasury Inflated Protected Securities is one of the best ways to protect you from the adverse effects of inflation. The government re-adjusts the principal twice a year in response to changes in the CPI (Consumer Price Index). The value of the bond increases as inflation increases. Even when the interest rate doesn’t increase, the stock holders get larger cash payments for the reason that the percent is applied to a larger principal. Consult with your financial planner prior to making financial decisions within your goals.
