TIPs index vs. Total Bond index

[kevink]

I guess given the state of the bond market the correct answer is "neither", but.....loving simplicity I have our IRA funds all in Vanguard Target Retirement Income fund (50% Bond Index, 20%TIPS,5% Money Market, 25% Total Stock Index). I like the risk/reward history of this allocation, but between reading "The Coming Generational Storm" & some of John Greaney's studies am tempted to put most or all of my taxable bond allocation into TIPS, or at least go 2:1 TIPs to Total Bond Index.

The other consideration is I am substantially committed to REITS, and have been told by one knowledgeable person that those are sufficient inflation protection & stay out of more TIPS.

Any thoughts appreciated!

 

[Cut-Throat]

but between reading "The Coming Generational Storm" & some of John Greaney's studies am tempted to put most or all of my taxable bond allocation into TIPS, or at least go 2:1 TIPs to Total Bond Index.

Quit reading financial books and enjoy your retirement. 8) - Otherwise, you'll just drive yourself crazy.

 

[charlie]

Check out floating rate bonds that pay x% + CPI.
I have some that average 2% + CPI (or about 5%
total now). These bonds are reset monthly at
the current CPI and pay monthly. At least you
get the current income to pay your taxes .....
unlike TIPS bonds. However, Vanguard's TIPS
fund does pay the total amount monthly .... but
the real rate is only about 1.4% the last time I
looked.

"The Coming Generational Storm" is a real eye
opener ..... you are wise to "read and heed"

Cheers,

Charlie

 

[BUM]

I have a position in the Vang. TIP fund. I need to recheck that 1.4% charlie. But I bought in months ago below yesterdays 12.55, the divvvies, STCG and LTCG payouts tally to 1.8% and the paper profit on the NAV gain adds a half percent. And it was practically my only position that went UP yesterday.

Boring, yes...underperforming, maybe....a loser, no. Whats not to like?

BUM