What Your Advisor Should Tell You About Inflation-Protected Securities

Episode 32 of The Financial Advisor Podcast with Fexingo: Lucas and Luna unpack TIPS—Treasury Inflation-Protected Securities—and whether they belong in a diversified portfolio. They start with the real return math behind the May 2026 TIPS auction, where the 10-year real yield opened at 1.95 percent. Lucas explains the mechanics: the principal adjusts with CPI, which sounds great until you realize taxes on phantom income eat into real returns. Luna pushes back on the common advisor line that TIPS are a no-brainer for retirees, citing the 2022 drawdown story where TIPS fell 12 percent in a year inflation hit 8 percent. They break down when TIPS work (unexpected inflation spikes, laddered maturities) and when they don't (rising real rates, taxable accounts). The episode closes with a practical framework: TIPS as a barbell with short-dated nominal bonds, not a standalone solution. Real numbers, honest trade-offs, no sales pitch. #TIPS #TreasuryInflationProtectedSecurities #Inflation #RealReturn #Bonds #FixedIncome #PersonalFinance #RetirementPlanning #Advisor #Portfolio #Laddering #Tax #CPI #FederalReserve #Finance #FexingoBusiness #BusinessPodcast #TheFinancialAdvisorPodcast Keep every episode free: buymeacoffee.com/fexingo