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Originally Posted by cute fuzzy bunny
... then be sure to die on schedule.
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Hopefully any prudent investor (who is not in a position to be able
to not deplete their portfolio under pessimistic scenarios) schedules
their death at least 5-10 years beyond their actuarial life expectancy.
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I believe both of those guys are experiencing some significant financial trouble after ten years of the tips-only diet.
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Yeah, same as any other XX-only diet, I reckon. I don't think anyone
here is recommending a TIPS-only portfolio. I plead guilty to having
posted a spreadsheet, months ago, showing how a TIPS-only portfolio
might be managed to provide a given SWR, but it was only as a
thought experiment, not a serious proposal.
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I'm not sure why inflation protecting a small slice of portfolio creates that much benefit, but then again, I guess as much diversification as possible is a good thing.
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Yes indeed, I think you could make the same argument for any
diversification move, e.g. "I don't see why protecting a small slice
of a portfolio against poor domestic-equitiies performance creates
that much benefit" ...
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I'd feel worse about regularly bringing up these points if the folks who actually sell TIPS didnt point out the exact same potential drawbacks.
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I'm glad you brought up these points - the first time - but I wonder how
often it's necessary to bring them up, in the same thread no less