Closet_Gamer
Thinks s/he gets paid by the post
Hi.
DW and I plan to buy a beach house next fall, so I'm stock pilling money for a down payment.
With inflation running, figuring out what to do with money that is explicitly set aside for shorter term needs is a conundrum. (I've posted on that overall question before, don't want to rehash that here.)
Specific Question: Are TIPS (or TIP Funds) a good short-term inflation protection?
I don't know enough about the payment/inflation calculation structure of the security to understand if it really provides short term protection or if its more of a long-term protection?
If I bought $1000 of SCHP (Schwab TIPS fund), is it a fair bet that it would be worth $1000+inflation in 12 months?
What about specific TIPS issues maturing in 12 months?
Thanks for any insights.
DW and I plan to buy a beach house next fall, so I'm stock pilling money for a down payment.
With inflation running, figuring out what to do with money that is explicitly set aside for shorter term needs is a conundrum. (I've posted on that overall question before, don't want to rehash that here.)
Specific Question: Are TIPS (or TIP Funds) a good short-term inflation protection?
I don't know enough about the payment/inflation calculation structure of the security to understand if it really provides short term protection or if its more of a long-term protection?
If I bought $1000 of SCHP (Schwab TIPS fund), is it a fair bet that it would be worth $1000+inflation in 12 months?
What about specific TIPS issues maturing in 12 months?
Thanks for any insights.