I understand what you are saying. I appreciate your responses! I'm not talking about my overall holdings which are OK with a non-rolling TIPS ladder and lots of other TIPS.You need to think more clearly about nominal vs. real returns, and you need to think more clearly about term risk (aka, interest rate risk), which includes both price risk and reinvestment risk. For example, the sentence, "For the $250K in TIPS to pay out as good as the 4% CD or at least $10K per year", makes no sense, since it doesn't exhibit clear thinking about either of these.snip
If you are concerned about preserving your purchasing power, both in terms of interest and principal at maturity, then TIPS are the way to go.
I'm asking about this $250K which I've used for years to kick off a nominal monthly payout. For years, it was 3%, then 5%, now 4%. I've always used CDs; now I'm looking at TIPS.
Can TIPS preserve $250K and kick off the same or better than a CD? Can TIPs beat a CD? I'm aware of the risks. Inflation and deflation get votes.
I think you are saying that it's possible but nothing is guaranteed. When the CD matures on Dec. 30th, I plan to be ready to do something.
Is this decision critical? No..I'm just hoping for optimal.
Statistics: Posted by hudson — Fri Dec 19, 2025 6:02 am — Replies 26 — Views 1576