This is a great article that cleared up a lot of misconceptions for me. Suppose I wanted to take advantage of the fact that TIPS have a better rate these days. Would buying a TIPS fund be sufficient to capitalize on that? Like VTIP? Or would you need to buy individual tips? I read with interest Allan Roth's article on building a TIPs ladder. But I didn't quite grasp how to construct one. Maybe you could write an article explaining the principles behind that. Like say I wanted to guarantee 20k of inflation protected income for 30 years. I'm pretty sure I wouldn't just put 20k into tips maturing every year from now until 2053, spending 600k total today. I've looked at the spreadsheets but wasn't sure where the numbers were coming from and how to think about them.
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This is a great article that cleared up a lot of misconceptions for me. Suppose I wanted to take advantage of the fact that TIPS have a better rate these days. Would buying a TIPS fund be sufficient to capitalize on that? Like VTIP? Or would you need to buy individual tips? I read with interest Allan Roth's article on building a TIPs ladder. But I didn't quite grasp how to construct one. Maybe you could write an article explaining the principles behind that. Like say I wanted to guarantee 20k of inflation protected income for 30 years. I'm pretty sure I wouldn't just put 20k into tips maturing every year from now until 2053, spending 600k total today. I've looked at the spreadsheets but wasn't sure where the numbers were coming from and how to think about them.
Post: Clipping Coupons
Link to comment from December 12, 2022