Note that you can get a risk-free real return of 3.5% on inflation-indexed U.S. Treasurys.
One can only hope that he owns some tax-exempt inflation-indexed bonds, just in case.
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Inflation-indexed bonds are securities that offer returns depending on the rate of inflation.
For tiny investments, the Is are a great deal, paying only half a point less than the tradable inflation-indexed Treasurys.
Accordingly, a private replacement for Social Security would have to take the form of a fully-inflation-indexed annuity with zero risk of default.
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The government said in February that it would issue inflation-indexed bonds to wean away small investors from buying unproductive assets such as gold.
Inflation-indexed Treasurys are also cited as providing a quiescent inflation indicator, calculated by subtracting their yield from the yield on normal Treasury bonds.
Inflation-indexed bonds now provide investors in many countries with better protection.
To increase liquidity, financial institutions will be allowed to invest in inflation-indexed bonds issued in the first half of the fiscal year, the central bank said.
Inflation-indexed bonds are experiencing a surge in popularity, both from investors worried about inflation and from borrowers who think they attract a different type of buyer.
His rival, Vice President Al Gore, also focused on education, pledging to expand a tax-free, inflation-indexed savings plans enabling parents to set aside money for their childrens' college education.
As of its last public disclosure on this score, it had a modest 16% allocation to fixed income, consisting of 7% in inflation-indexed bonds, 4% in corporates and the rest in high-yield and foreign debt.
Rampant inflation--tax brackets weren't indexed in those days--was slamming workers with massive unlegislated tax hikes by pushing them into higher tax brackets.
In 1975 -- by no coincidence the first year that benefits were indexed to inflation -- Social Security's pension fund, whose formal title is Old-Age and Survivors Insurace (OASI), paid out more than it took in.
The solution is a "dual-index" mortgage, in which the principal balance is indexed to inflation, and payments are indexed to Mexico's government-decreed minimum wage.
Capital gains would also be indexed for inflation--no more paying taxes on phony gains.
Income streams from real enterprises were nil anyway in the context of negligible economic growth and a tax code un-indexed for inflation.
It also suggests that the Alternative Minimum Tax--which threatens to ensnare millions of middle-income households--be indexed to inflation.
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Inflation indexed 10 and 5-year Treasurys are both negative.
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Taxes on inherited estates will go up to 40% from 35%, but the exemption will be indexed to rise with inflation -- a provision the source said was added at the insistence of moderate Democrats.
The Government Pension Offset (see 23) provision will decline, in real terms, if your pension from non-covered employment is not fully indexed for inflation.
First, for most countries the greatest long-term fiscal threat comes from unfunded retiree benefits, which by their nature are indexed to inflation.
Because it was never indexed for inflation, today it imposes sharp, surprise tax increases on the middle class in the highest-tax states.
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