We have been switching mainly to fixed income investments for the last two years. My goal is to save enough to just be able to live off interest from things like TIPS and maybe CD ladders.
I realized the other day that part of the reason we hear so much about stocks as a good investments is because middle men make money from them so they get advertised more than investments like TIPS. It is kind of like prescription drugs where we see TV and magazine ads for prescription high blood pressure medication, but none for fruits and vegetables rich in potassium, even though the fruits and vegetables are cheaper and might work better for some people. It is just that the profit margins on bananas don't justify a lot of advertising.
I realized the other day that part of the reason we hear so much about stocks as a good investments is because middle men make money from them so they get advertised more than investments like TIPS. It is kind of like prescription drugs where we see TV and magazine ads for prescription high blood pressure medication, but none for fruits and vegetables rich in potassium, even though the fruits and vegetables are cheaper and might work better for some people. It is just that the profit margins on bananas don't justify a lot of advertising.