Mark,
Thanks for replying. I like your “opportunity yield“ phrasing much better than my “coin flip” phrasing…thanks for clarifying. Interest-rate direction is definitely a tough nut to crack and none of us know what really is going to happen much like the ups and downs of the equity market. I do have a plan, I’m still trying to determine the thoroughness… so still reading and still learning 🤔. TIPS may find their way in my portfolio yet 😉. The HD community is helping me in that regard.
Thanks, David.
My bond investments are also all in Vanguard index funds except for one small position in Vanguard Wellington fund (roughly 65/35% stocks/bonds, int core bonds). That is one of my original investments and in a taxable account. I’m trying to decide whether to leave that alone or rip the band-aid off and sell to further optimize asset location, but that is a discussion for a different time :-).
Mark, Thanks for another great article and keeping the TIPS discussion going. I hadn't heard much about TIPS until post COVID and the recent 2022 bond crash, inflation, etc. "The Bond bull market is over and the Bond bear market is here to stay" seems to be the way the wind is blowing these days. It certainly has sparked much discussion on HD, and many other podcasts, blogs, and YouTube Channels. I follow Jesse Cramer and I had included his podcast on the subject in another HD TIPS article. Also, Rob Berger has expressed his bond investing philosophy to invest in 50% core bonds and 50% TIPS, similar to others in the comments thread (e.g., Rob Jennings). Many other financial experts are providing similar advice, saying it's prudent to add TIPS in your fixed income portion of your portfolio. They typically offer 25-50% of your bond allocation...but I never hear 100%. And of course, William Dorner has expressed his preference in avoiding bonds all together and instead opting for S&P 500 and cash. Add TIPS? How much?
For me I'm still mulling it over. I currently am investing my fixed income portion of the portfolio in a mix of U.S. treasuries and corporate bonds: 2/3 short, 1/3 intermediate; 2/3 treasury, 1/3 corporate -- all high quality investment grade. My cash is primarily in VUSXX (by choice) and VMFXX (sweep accounts). I want my fixed income to earn me something but I want it to be mostly low volatility. TIPS, to me is another coin flip on is inflation going up or is it going down. Most folks say "up!" I am staying away from long duration bonds. But I'm not investing in TIPS. Is this a contradiction in strategy or is it still a sound approach? The TIPS choice stems from wanting to match spending liabilities and hedging for inflation. Currently, I'm choosing to implement an asset allocation, total return & rebalancing strategy in my upcoming retirement. I am selecting the fixed income portion to cover N number of years of expenses that I feel comfortable with (to cover near-term expenses and buffer for a market downturn) and using the equity portion for growth and an inflation hedge. Again, right now, I'm choosing to not include TIPS. Choosing TIPS may be the right choice for some, but to me it still feels the TIPS bet could be "right" if inflation goes higher than the TIPS rate, or it could be "wrong" if inflation goes down. I am choosing to cover that inflation risk in the portfolio with my well-diversified (I think) equity allocation. Personal finance is *personal* as they say, so we all have our personal approach...but I'm all ears if someone would like to offer any advice.
RQ,
Could you elaborate on “free maintenance?” Does that mean absolutely everything that would come up in three years or do you mean free oil changes, free tire rotations, and multi point inspection? Thanks.
Is the price at Carmax typically retail or private sale or somewhere in between. No haggling is great to avoid the wasted time and angst of the car-buying process. But we HDers still want a good deal, right? ;).
Adam, Good article, lots to ponder.
For you your statement, “That’s why investors’ best defense, in my view, is a defensive asset allocation,” what does defensive look like to you… what assets and at what percentage of one’s portfolio. And then secondly, what is your recommended percentage in international (global market percentage, something less or a more dynamic percentage based on global market conditions, rising/falling U.S. dollar, etc.)?
Comments
Mark, Thanks for replying. I like your “opportunity yield“ phrasing much better than my “coin flip” phrasing…thanks for clarifying. Interest-rate direction is definitely a tough nut to crack and none of us know what really is going to happen much like the ups and downs of the equity market. I do have a plan, I’m still trying to determine the thoroughness… so still reading and still learning 🤔. TIPS may find their way in my portfolio yet 😉. The HD community is helping me in that regard.
Post: Taking a Loss?
Link to comment from August 3, 2026
Thanks, David. My bond investments are also all in Vanguard index funds except for one small position in Vanguard Wellington fund (roughly 65/35% stocks/bonds, int core bonds). That is one of my original investments and in a taxable account. I’m trying to decide whether to leave that alone or rip the band-aid off and sell to further optimize asset location, but that is a discussion for a different time :-).
Post: Taking a Loss?
Link to comment from August 3, 2026
Mark, Thanks for another great article and keeping the TIPS discussion going. I hadn't heard much about TIPS until post COVID and the recent 2022 bond crash, inflation, etc. "The Bond bull market is over and the Bond bear market is here to stay" seems to be the way the wind is blowing these days. It certainly has sparked much discussion on HD, and many other podcasts, blogs, and YouTube Channels. I follow Jesse Cramer and I had included his podcast on the subject in another HD TIPS article. Also, Rob Berger has expressed his bond investing philosophy to invest in 50% core bonds and 50% TIPS, similar to others in the comments thread (e.g., Rob Jennings). Many other financial experts are providing similar advice, saying it's prudent to add TIPS in your fixed income portion of your portfolio. They typically offer 25-50% of your bond allocation...but I never hear 100%. And of course, William Dorner has expressed his preference in avoiding bonds all together and instead opting for S&P 500 and cash. Add TIPS? How much? For me I'm still mulling it over. I currently am investing my fixed income portion of the portfolio in a mix of U.S. treasuries and corporate bonds: 2/3 short, 1/3 intermediate; 2/3 treasury, 1/3 corporate -- all high quality investment grade. My cash is primarily in VUSXX (by choice) and VMFXX (sweep accounts). I want my fixed income to earn me something but I want it to be mostly low volatility. TIPS, to me is another coin flip on is inflation going up or is it going down. Most folks say "up!" I am staying away from long duration bonds. But I'm not investing in TIPS. Is this a contradiction in strategy or is it still a sound approach? The TIPS choice stems from wanting to match spending liabilities and hedging for inflation. Currently, I'm choosing to implement an asset allocation, total return & rebalancing strategy in my upcoming retirement. I am selecting the fixed income portion to cover N number of years of expenses that I feel comfortable with (to cover near-term expenses and buffer for a market downturn) and using the equity portion for growth and an inflation hedge. Again, right now, I'm choosing to not include TIPS. Choosing TIPS may be the right choice for some, but to me it still feels the TIPS bet could be "right" if inflation goes higher than the TIPS rate, or it could be "wrong" if inflation goes down. I am choosing to cover that inflation risk in the portfolio with my well-diversified (I think) equity allocation. Personal finance is *personal* as they say, so we all have our personal approach...but I'm all ears if someone would like to offer any advice.
Post: Taking a Loss?
Link to comment from August 3, 2026
RQ, Could you elaborate on “free maintenance?” Does that mean absolutely everything that would come up in three years or do you mean free oil changes, free tire rotations, and multi point inspection? Thanks.
Post: Buying a car in retirement
Link to comment from July 22, 2026
Is the price at Carmax typically retail or private sale or somewhere in between. No haggling is great to avoid the wasted time and angst of the car-buying process. But we HDers still want a good deal, right? ;).
Post: Buying a car in retirement
Link to comment from July 22, 2026
Adam, Good article, lots to ponder. For you your statement, “That’s why investors’ best defense, in my view, is a defensive asset allocation,” what does defensive look like to you… what assets and at what percentage of one’s portfolio. And then secondly, what is your recommended percentage in international (global market percentage, something less or a more dynamic percentage based on global market conditions, rising/falling U.S. dollar, etc.)?
Post: Open Questions
Link to comment from July 11, 2026
Gotcha, makes sense.
Post: What’s in your portfolio ?
Link to comment from July 4, 2026
Agree. When I said inflation, I was thinking inflation and rising interest rates, but you are correct…they can be two independent events.
Post: What’s in your portfolio ?
Link to comment from July 4, 2026
Great observation. Thanks for passing along.
Post: Investment Wisdom
Link to comment from June 28, 2026
John, Thanks for providing the link! Very good article, I enjoyed the read…covers a lot.
Post: What’s in your portfolio ?
Link to comment from June 28, 2026