Tuesday, April 1, 2008

TIPS against stagflation

Since both the net and the blogosphere is inundated with financial advice, I found that there only few dynamic, live blogs that actually offer practical advice. To compound the need for non-nonsense advice is that everyone's portfolio is as unique as a portfolio owner.

I found that with he help of George Divel and his blog I could make sense of Treasury paper and CDs, and moved into TIPS (Treasury Inflation Protected Securities).

TIPS perform well even in periods of stagflation, an economic condition that is fast and approaching. "If you buy a conventional Treasury, you receive the same interest payment semiannually for the life of the bond. With TIPS, the Treasury adjusts the principal value of a bond each month (with a two-month lag time) to keep pace with inflation. A higher principal value also lifts interest payments," he advises.

His investment tips like these are being updated everyday. I reviewed my portfolio and adjusted it accordingly with the tips.

I think George boils down the financial market trends and backs it up with his personal experience to learn from. Compared to other brokers, George has the best research tools as well as personal knowledge to navigate wealth planning. His approach to balance risk and tax (consider the deadline looming closer) as well as income is incredibly honest, simple and client-oriented.

Check out http://georgedivel.wordpress.com/.

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