An Important Tip On Buying TIPS

If you purchase Treasury Inflation Protected Securities, better known by the acronym TIPS, and you do so using a Mutual Fund like the Vanguard Treasury Inflation Protected Securities Fund, then you should be interested in an important bit of information mentioned on Bob Brinker's Money Talk Program this past Sunday.

The NAV (Net Asset Value) of TIPS can rise or fall depending on factors prevailing in the marketplace, and one way to keep an eye on the direction of the NAV for TIPS is to pay attention to the Base Rate, which you should be able to find in publications like Barron's or The Wall Street Journal.

The way this works, whenever the Base Rate of TIPS begins to rise, then the NAV of the TIPS Mutual Fund will fall. And vice versa. So staying current with the Base Rate will be a great help toward purchasing TIPS in a timely manner!

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