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Clark Howard just told his listeners to do something most people put off for decades.
The show notes for his Sept. 28 podcast call opening a MySocialSecurity account “an urgent security measure you need to take right now – no matter your age.” (1)
The same episode pitches Treasury Inflation-Protected Securities, or TIPS, as “a powerful, inflation-proof alternative to standard bonds” for people in their late 50s and beyond. (1)
On Social Security, he’s right, and it’s not close.
The Social Security Administration itself says creating your account can “take away the risk of someone else trying to create one in your name.” (2) Its inspector general has warned that identity thieves open accounts in beneficiaries’ names and redirect their direct deposits. (3)
And imposters are cashing in. Americans reported losing about $920 million to government impersonators in 2025, according to the Federal Trade Commission. (4)
On TIPS, he’s mostly right too. With inflation at 3.4% (5), protecting your savings from rising prices makes sense.
But I’ve been a CPA since 1981, and TIPS come with a tax wrinkle that can surprise you every April. Here are seven moves, starting with one that takes just a few minutes.
1. Claim your Social Security account before a crook does
Go to ssa.gov/myaccount. You’ll sign in through Login.gov or ID.me, which require an email address, a government-issued photo ID and a phone or camera. (6)
Once you’re in, you can change your address or direct deposit, and you can monitor for unusual activity. (6) The point is to plant your flag first, so a thief can’t plant theirs.
If you’re already collecting benefits, this is doubly important. Your monthly deposit is exactly what fraudsters want to reroute. (3)
2. Check your earnings record while you’re there
Clark has made this point before: “if they have the wrong figures, it could end up reducing the Social Security benefit you get forever.” (7) He suggests checking “at least every third year.” (7)
I agree. Your benefit is calculated from the earnings Social Security has on file for you. If a year is missing or low, you want to find out while you still have the W-2s to prove it, not after you’ve filed.
3. If your data has leaked, lock the door
If you know your Social Security information has been compromised, you can ask Social Security to block electronic access to your record. Then no one, including you, can see or change your information online or through the automated phone line until you ask to unblock it. (8)
Given how many mega-breaches we’ve seen, it’s smart to assume your number is already out there.
Coveron — from Nord Security, the makers of NordVPN — monitors the dark web and your credit around the clock, then alerts you with clear steps to lock things down. If thieves strike anyway, identity theft insurance covers up to $1 million in eligible recovery costs. Start monitoring today.
One thing before we keep going — the financial world is louder and dumber than ever. Hot takes everywhere. Almost none of it is worth your time. I’ve spent 35+ years cutting through the noise so you don’t have to. Sign up for the free Money Talks Newsletter — 10 seconds, no spam, just the stuff that matters.
4. Clark’s right that bond funds got scary
Bond prices and interest rates move in opposite directions. The SEC’s example: if market rates rise from 3% to 4%, a $1,000 bond’s market value can fall to about $925. (9) The longer the bond, the bigger the hit.
That’s what makes a traditional bond fund risky when rates are climbing. You bought it for stability, and it can still lose money.
5. TIPS protect you from inflation in a way regular bonds can’t
With TIPS, the principal adjusts with inflation, and your interest payments rise along with it. If you hold to maturity, you get back the adjusted principal or your original principal, whichever is greater. (10)
And they finally pay something real. The 10-year TIPS yielded 2.90% above inflation on Sept. 28, according to Federal Reserve data. (11) For much of the last decade and a half, that number sat near zero, and at times below it.
6. Now the tax catch: you pay tax on money you haven’t received
Here’s the part that trips people up. When inflation bumps up your TIPS principal, that increase is subject to federal tax in the year it happens, even though you won’t see the cash until the bond matures or you sell. (10)
Tax pros call it phantom income. In a year of high inflation, you could owe tax on a gain you can’t spend. TIPS are exempt from state and local income tax, which helps. (10)
My fix: hold TIPS, or a TIPS fund, inside an IRA or 401(k), where the phantom income isn’t taxed each year. Kiplinger makes the same recommendation. (12)
Another option is Series I savings bonds, which pay 4.26% for bonds bought through Oct. 31 (13), and let you put off the federal tax until you cash them in.
If you’d rather buy a TIPS fund inside an IRA you control, SoFi Invest lets you begin with as little as $5 and no account minimum. Check it out here.
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
7. Don’t swap all your bonds on a podcast’s say-so
TIPS aren’t magic. If inflation cools, a regular Treasury could come out ahead. And TIPS prices still bounce around if you sell before maturity.
How much belongs in TIPS depends on your tax bracket, your accounts and when you’ll need the money. If you’d like a second set of expert eyes to evaluate your options, finding one is easier than ever. For example, SmartAsset matches you, free, with up to three fiduciary advisors who are legally required to put your interests first. Have $100K+ in investments? Get matched free in minutes.
The bottom line
Clark Howard gave you two good assignments this week, and one of them is urgent.
Open your my Social Security account today, even if you’re 30 and think retirement is a rumor. It takes a few minutes, and it slams a door that thieves love to walk through.
TIPS can be a smart shield against inflation, as long as you put them in the right account. Otherwise, the IRS gets a piece of your protection before you do.
Protecting your money is half the battle. Protecting it from taxes is the other half.
Sources: 1. Clark.com; 2. Social Security Administration; 3. SSA Office of the Inspector General; 4. Federal Trade Commission; 5. Bureau of Labor Statistics; 6. Social Security Administration; 7. Clark.com; 8. Social Security Administration; 9. U.S. Securities and Exchange Commission (Investor.gov); 10. Fidelity Investments; 11. Federal Reserve Bank of St. Louis (FRED); 12. Kiplinger; 13. Yahoo Finance
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