Because TIPS have some quirky tax features, I assembled the ladder in my 401(k) and individual retirement accounts, where the money can accrue tax-deferred.

Major firms such as Fidelity, iShares, Pimco, Schwab and Vanguard offer TIPS funds with annual expenses of 0.2% or less. Although funds are more convenient, in most cases their holdings are dynamic, so their future cash flows aren’t precisely knowable.

If inflation increases the face value of TIPS, that growth is federally taxable in the year it occurs, even though you can’t collect any cash from it until the TIPS matures or you sell. (TIPS are exempt from state and local income tax.)

The new headline 5.27% I bond rate only applies to new bonds. Your new rate for an existing I bond is likely much lower, and you may be better off cashing it out for a CD.

• If you've held your I bond for at least a year, you can move your funds to a better-paying CD. The issue date of your bond can tell you the optimal time to cash in, with 15 months being the sweet spot for many 2022 bond purchasers.

• But what has an even bigger impact this cycle is that anyone buying a new I bond between November 2023 and May 2024 will receive a fixed-rate component of 1.30%.
  That is notably higher than the 0.00% fixed rate assigned to I bonds purchased last year, and explains why new I bonds purchased today will pay a higher rate of 5.27% for the initial six months, while 2022 I bonds will only pay 3.94%.