The Portfolio Report

"Here's where we keep track of what's what—a little of this, a little of that, spread around like hotdish at a church supper."

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Total Value
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Cost Basis
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Total Gain/Loss
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Return
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By Category

By Asset

Income Summary

Last 12 Months

TIPS Interest (Coupon)

Semi-annual cash payments based on the stated coupon rate, paid on the inflation-adjusted principal. This is real cash you receive twice a year.

Inflation Gains

When TIPS mature, you receive the inflation-adjusted principal. The difference between what you paid and what you receive is taxable income, even though you're just getting your purchasing power back. This is sometimes called "phantom income."

Tax Implications

The IRS taxes inflation adjustments annually (OID rules), not just at maturity. The inflation gains shown here represent the cumulative gain realized when bonds mature.

Total Income
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Money Market
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Dividends
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TIPS Interest
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TIPS Inflation Gains
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TIPS Maturity Ladder

What are TIPS?

Treasury Inflation-Protected Securities (TIPS) are U.S. government bonds designed to protect your purchasing power. Unlike traditional bonds that pay a fixed amount, TIPS adjust their principal value based on the Consumer Price Index (CPI). When inflation rises, your principal increases—and so do your interest payments, since they're calculated on the adjusted principal.

Why Hold TIPS?

TIPS serve as an inflation hedge within a portfolio. While traditional bonds lose real value during inflationary periods, TIPS maintain their purchasing power. They're backed by the full faith of the U.S. government, making them one of the safest ways to protect against inflation risk. The trade-off is that TIPS typically offer lower yields than conventional Treasury bonds when inflation is low.

What is a Bond Ladder?

A bond ladder is a strategy where you hold bonds with staggered maturity dates rather than concentrating in a single maturity. As each bond matures, the principal is returned and can be reinvested. This approach provides predictable cash flows, reduces interest rate risk, and maintains liquidity without forcing you to sell at inopportune times.

Reading This Chart

Each bar represents a TIPS position maturing on that date. The height shows the market value. Hover over any bar to see the coupon rate, exact maturity date, and days remaining. The positions are spread from 2026 through 2033, ensuring regular maturities approximately every six months.