Rich_by_the_Bay
Moderator Emeritus
I searched and read. I still don't have a good feel for the place of TIPS in a FIRE portfolio.
My goal is to have some place to withdraw cash in the face of surging inflation when MMF, stocks, and short-term bonds are not keeping up. If I have a TIPS mutual fund, I presume it would given me such an option.
But to generate the kind of cash which would make a serious difference in this setting you would need a fair amount in TIPS, for which performance is not stellar in a noninflationary setting. Talking tax sheltered accts, BTW.
My questions, in essence:
a) how much in TIPS makes sense relative to annual expenses and
b) is it worth it compared to just to sitting it out til stocks catch up (which they tend to do most of the time with inflation)?
My goal is to have some place to withdraw cash in the face of surging inflation when MMF, stocks, and short-term bonds are not keeping up. If I have a TIPS mutual fund, I presume it would given me such an option.
But to generate the kind of cash which would make a serious difference in this setting you would need a fair amount in TIPS, for which performance is not stellar in a noninflationary setting. Talking tax sheltered accts, BTW.
My questions, in essence:
a) how much in TIPS makes sense relative to annual expenses and
b) is it worth it compared to just to sitting it out til stocks catch up (which they tend to do most of the time with inflation)?