TIPS


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TIPS

Tip

1. Information on a security, company, or anything else provided by one investor or trader to another that is not available to the general public, that can produce significant profits if it proves to be accurate. See also: Inside information.

2. See: Gratuity.

Treasury Inflation-Protected Security

A U.S. Treasury security that protects the bondholder from inflation. Most Treasury securities, like most fixed dollar obligations, pay a fixed coupon rate periodically and mature at par. While this carries low risk, it exposes investors to the possibility that the inflation rate will outpace the interest rate represented on the coupon. In order to protect against this, a Treasury Inflation-Protected Security automatically increases its principal according to the inflation rate as tracked by the Consumer Price Index. Thus, while the coupon rate does not increase, the dollar amount paid does. Because TIPS are so safe, they offer a very low rate of return. See also: Real Return Bond.

TIPS

Inflation-protected security (TIPS).

US Treasury inflation-protected securities (TIPS) adjust the principal twice a year to reflect inflation or deflation measured by the Consumer Price Index (CPI).

The interest rate is fixed and is paid twice a year on the adjusted principal. So if your principal is larger because of inflation you earn more interest. If it's lower because of deflation, you earn less.

You can buy TIPS with terms of 5, 10, or 20 years at issue using a Treasury Direct account or in the secondary market. At maturity you receive either the adjusted principal or par value, whichever is greater.

You owe federal income tax on the interest you earn and on inflation adjustments in each year they're added even though you don't receive the increases until the security matures. However, TIPS earnings are exempt from state and local income taxes.

These securities provide a safeguard against deflation as well as against inflation since they guarantee that you'll get back no less than par, or face value, at maturity.

References in periodicals archive ?
It's not cool [for businesses] to have the ability to pocket tips.
Also, tip-sharing seemed to be a bigger issue, as tipped employees were sharing their tips with non-tipped employees and those tipped employees didn't always feel that the sharing was voluntary.
One percent say they tip their waiters less than P10; 4 percent tip P11 to P20; 11 percent tip P31 to P40; 24 percent say they tip P41 to P50; 24 percent say they tip their waiters P51 to P100; while 10 percent tip between P101 to P150.
NANDOS The company said that tips are split equally among staff members.
If your business wants to track tips more effectively or you're worried about IRS compliance, see how you can save time and money, improve safety and security, and increase employee satisfaction with TipCentral.
Federal law limits tip pooling arrangements among employees to those who typically receive tips (e.
According to CRA Interpretation Bulletin CPP-1, controlled tips are considered to have been paid by the employer to the employee.
We also want a transparent system so that staff and customers know exactly what happens to tips.
All in all, the average recommendation for a restaurant tip is 16.
The hotline was suggested by City Councilman Steve Knight, a Los Angeles police officer, who said many communities use tip lines to get more information about suspicious activity to law enforcement officials.
They include Plus nozzles, which reportedly provide 20% to 30% energy savings due to improved materials in the body, tip, and end ring, as well as a new geometry for the tips and end bushing.
TIPs may be reinstated if a Working Group is formed to review the material in accordance with the TAPPI Technical Information Papers Guidelines.