Oh, I get it (I think). I was thinking about it in terms of generating current income. But you're thinking about it in terms of setting a chunk of money aside and being assured that it will grow at the same rate of inflation even if the market tanks, while getting some money from it each year as well.Ok, but let's say you want to retire at age 60 and start collecting social security at 70.
At age 50 you but some 10 year TIPs that will mature at age 60 for you to spend. You don't have inflation risk. You don't have risk of a stock market crash. Buy again at age 51 to spend at 61. Etc. Etc.
In fact, if you are 30, you could buy 30 year TIPS for age 60 in tax deferred. If you are 100% stocks then more power to you, but if you do carry a bond allocation, then TIPS now have a healthy yield and are about as safe as it gets.
Statistics: Posted by icbmwapg41 — Sat Oct 12, 2024 11:32 pm — Replies 2 — Views 73