What Goes Up, Keep Below You
A Primer on the New Inflation-Indexed Bonds by
Deloitte & Touche OnLine
Updated Monday, January 27, 1997
In a bid to carve out the
government’s share of the $625 billion Americans have stashed away in 401(k)
retirement plans, the Treasury Department in January will begin selling bonds with returns
tied to inflation. It is potentially a watershed event for American savers, and Deloitte
& Touche’s Financial Counseling Services planners have looked at the issues:
The Skinny: The basics of what
Treasury Department proposes, how the bonds will work, the unanswered questions and a few
guesses at the answers.
Keeping Up with the Greenspans: Inflation
is a major consideration in any savings and investment plan. Inflation-indexed government
bonds may help you beat inflation, but your savings plan may require you do more than just
beat inflation. Deloitte & Touche financial planner Chris Parsons tells how
these bonds might fit into a financial plan.
History in the Making:
Harvard University economist John Y. Campbell has been an advocate of inflation-indexed
securities. They may be the one thing, he says, that gets every investor and saver
thinking about the effects of inflation. A conversation.
Buy Wholesale: A primer on how
to buy bonds directly from the government.
What If?: Our
calculator compares hypothetical inflation-indexed bonds to conventional bonds over
10-year and 30-year periods.
E-mail Us: Still confused?
Send your questions to Deloitte & Touche financial planner Chris Parsons, and
we’ll post your answers.
Disclaimer: The legal
stuff. Please read this. |
