WHAT $1,000 BUYS: INVESTING

TIPS for These Times

Buy bonds that stay a step ahead of inflation. Consider parking $1,000 of your savings in Treasury Inflation-Protected Securities or TIPS. Unlike traditional bonds, prinicpal and interest payments on TIPS are adjusted for consumer price inflation. And TIPS perform well even in periods of rising inflation coupled with stagnant economic growth.

You can buy TIPS online or through your broker. If you prefer investing in a portfolio of TIPS, consider Harbor Real Return Institutional (HARRX) which requires a $1,000 minimum investment. -- Andrew Tanzer