Telly
Thinks s/he gets paid by the post
- Joined
- Feb 22, 2003
- Messages
- 2,395
5% of total portfolio in VG TIPS fund. Account value has gained 60% since I bought it in 2003 or was it 2004. I don't have set allocations within the fixed area, either.
22% of our fixed income component, with a portfolio equity to fixed income ratio of ~50:50.For those of us close to or actually in retirement, what %age of your portfolio do you have in TIPS?
One thing you could do is to look at the Vanguard Target Retirement funds and select the date that you think represents your risk profile. For instance, the VTOVX the one for 2005 has 64% bonds with 19% in TIPS, link: https://personal.vanguard.com/us/funds/snapshot?FundId=0302&FundIntExt=INT#hist=tab:2I think I should have addressed my question to those with lazy portfolios. People who look for bargains and change their allocations outside of some basic allocation will probably be all out of TIPS.
I suppose that he will answer, but the question interests me also. I look at the allocation more as a market basket. If chicken is cheap, I buy chicken. If beef or pork is on sale this week, I buy beef or pork. Markets are always reacting to various things, some fundamental but many just due to whims and fancies and various technical factors of trading. I want to fade those market actions.
Even at my age, I would be ok with 90-95% equities, if they are cheap enough relative to fixed, ands even more importantly absolutely. When TIPS were offering 3%+, I bought a lot of them, but foolishly sold them for relatively small gains to buy stocks in the early 00s.
Everything today stinks; it is not a good time to be an investor... Todays retirees must poke around in the chicken guts, trying to find some scrap to make a meal from.
Ha
Is everyone a market timer? I've rebalanced from TIPs to equities recently, to keep then around 15%.
Nice article.This article suggests there are better options for inflation protection than TIPS + noting that SS is already inflation protection:
Upside: There Are Better Ways to Fight Inflation - WSJ.com