At present, my intention is to allocate 35% US TM, 35% Int'l TM, and 30% TIPS just prior to retirement. (I'm at 50/50 US/Int'l equity TM's currently)
After reading the recent Scott Burns book and a similar book by Peter Peterson, I suspect that inflation will likely be greater in coming decades than it has been recently. That leads me toward TIPS for my FI allocation.
My preference would be to hold TIPS via the Vanguard TIPS index, and simply withdraw 6 mos living expenses in January & July from the three indexes as required to maintain my target allocation, dumping the $$ into an ING money market account which we'd draw from. Does that seem like a reasonable approach?
Is there a more efficient way for me to hold TIPS as the primary FI portion?
How might I most accurately handle this in FIREcalc? Enter a TIPS rate of 2.1%, and let the portfolio expense ratio down below account for Vanguard's 0.18% ER?
Thanks,
Cb
After reading the recent Scott Burns book and a similar book by Peter Peterson, I suspect that inflation will likely be greater in coming decades than it has been recently. That leads me toward TIPS for my FI allocation.
My preference would be to hold TIPS via the Vanguard TIPS index, and simply withdraw 6 mos living expenses in January & July from the three indexes as required to maintain my target allocation, dumping the $$ into an ING money market account which we'd draw from. Does that seem like a reasonable approach?
Is there a more efficient way for me to hold TIPS as the primary FI portion?
How might I most accurately handle this in FIREcalc? Enter a TIPS rate of 2.1%, and let the portfolio expense ratio down below account for Vanguard's 0.18% ER?
Thanks,
Cb