what is 'TIPS' in the firecalc

[wstu32]

thank you in advance.

 

[wstu32]

how do i use it. what do you put in?

 

[KB]

Treasury Inflation Protected Securities.

http://www.treasurydirect.gov/indiv/products/tips_glance.htm

 

[wstu32]

thanks kb
what figure would i use? ... when 2.5 is in there what does that mean?
it seems to really boost my figures...

 

[KB]

If you don't already own any TIPS, you would not put anything in that field.

 

[wstu32]

thanks

 

[Gearhead Jim]

My recollection is that the TIPS rate you use in the calculator, also slightly changes the assumptions about 5 yr Treasuries. Anyone care to run a few test scenarios for us?