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11-21-2003, 03:25 AM

While it seems TIPS are a good idea in a tax deferred account, if I am retiring in 2004, and my tax deferred accounts are maxed out (401K does not offer TIPS and don't qualify for IRA contributions), I am looking at TIPS as an alternative to taxable CD's. In that event, are the 10-year TIPS a good alternative now. If interest rates increase over the next several years, what will this do to the principal amount assuming an early sale on the secondary market?

11-21-2003, 03:25 AM	#13
adviceseeker Guest Posts: n/a	While it seems TIPS are a good idea in a tax deferred account, if I am retiring in 2004, and my tax deferred accounts are maxed out (401K does not offer TIPS and don't qualify for IRA contributions), I am looking at TIPS as an alternative to taxable CD's. In that event, are the 10-year TIPS a good alternative now. If interest rates increase over the next several years, what will this do to the principal amount assuming an early sale on the secondary market?