TIPS are a type of security offered by the U.S. Treasury that provides protection against inflation. When you purchase a TIP, you will receive the interest payments semi-annually and you will at least receive your original principal amount at maturity, however unlike a regular Treasury bond, the interest and redemption amounts are tied to inflation rates.
Preferred stock is a hybrid security, meaning it is not a stock or a bond. Preferred stock is an equity security that shows ownership in a company. In most cases, preferred stock is offered to the public by the issuing company to acquire another company, or to improve capital and expansion at a time when stockholders and the public are not buying common stock. Unlike common stock, preferred stock does not fluctuate very much in price.
When investing in an IRA, you have limitless choices, unlike an employer-sponsored plan. We have some suggestions to get you started.
We provide some guidance for the novice-investor on how to invest the money you’re saving.