An article in today's WSJ (2/28/05) by Alfred Rappaport says that "The exceptionally fortunate can achieve their financial goals with the income from government bonds such as Treasury Inflation-Protected Securities (TIPS) and llocate remaining funds to stocks without much worrying. . . ."
My question is how much in investible assets would one have to have to rely primarily on TIPS to achieve an income of say, $100,000 per annum for 30+ years (and still have some dollars left over for heirs)?
Also, what would "rely primarily" mean in terms of percentage of investible assets in TIPS vs other asset classes?
Does anyone know whether there's any research on this that's available and understandable?
Thanks!
My question is how much in investible assets would one have to have to rely primarily on TIPS to achieve an income of say, $100,000 per annum for 30+ years (and still have some dollars left over for heirs)?
Also, what would "rely primarily" mean in terms of percentage of investible assets in TIPS vs other asset classes?
Does anyone know whether there's any research on this that's available and understandable?
Thanks!