TIRA fixed income suggestions

[bpgdeg1234]

Thanks in advance for any input you can provide.

We have a decent nestegg with our brokerage account TIRA presently invested all in fixed income (mainly individual nominal treasuries and brokerage CDs) and now will have an influx of $230K into the TIRA MM settlement account.

Our taxable account has stock mutual funds as well as a 5-year ladder of direct and brokerage CDs, MYGAs and $220K of iBonds. We are not looking for additional stock exposure and are interested in fixed income for this additional TIRA money.

In light of current inflation though I have been considering whether we should go the TIPS route for this new funding to acquire some additional inflation protection insurance. So curious whether it makes sense to establish a TIPS ladder or just invest some or all of the $230K into a few individual TIPS (new 10 Year TIPS auction this week) or prehaps forget TIPS and just continue with nominal treasuries, etc. Any thoughts would be appreciated.

Thanks,
deeMatrix

 

[mrfeh]

TIPS do better than nominal bonds during periods of unexpected inflation, not just high inflation. Nobody knows what the future will hold, so nobody knows if TIPS will do better or worse.

There may be reasons to hold TIPS, but "inflation is high right now" is not one of them.

 

[bpgdeg1234]

TIPS do better than nominal bonds during periods of unexpected inflation, not just high inflation. Nobody knows what the future will hold, so nobody knows if TIPS will do better or worse.

There may be reasons to hold TIPS, but "inflation is high right now" is not one of them.

Thanks mrfeh for your perspective. I'm really not looking to compare whether TIPS will do better or worse than nominal treasuries but more of whether we should include them for the inflation protection insurance they provide as a hedge to help preserve the purchasing power of a portion of a traditional IRA that is otherwise only invested in nominal treasuries and brokerage CDs.