S, I am with you that I can’t totally explain, nor do myself, all the math calculations related to TIPS on TIPSWATCH.com. But I do understand TIPS are a good tool to address inflation risk. A recent retire with style episode #235 stated, “Inflation protection is strongest when layered across multiple tools—including delayed Social Security, TIPS, I Bonds, and appropriately sized equity exposure”. I already had money in a short term TIPS fund, but my understanding was that holding individual TIPS to maturity in a tax sheltered account in a ladder that matched future yearly liabilities (i.e. expenses) was superior to just a TIPS fund which can go down in value like any bond fund can. But I was also daunted with HOW to set up a TIPS ladder, as a person who had never bought individual bonds or stocks. Fortunately, Laura Kelly explained what I needed to know in a HD posting (humbledollar.com/2024/09/laying-down-a-floor/), then I supplemented with the Berger video previously mentioned. So I started with a short smallish 5-year bridge ladder. All went well in the purchasing, the rungs have not started to expire yet. Subsequently, this spring I built a larger longer ladder. Some people buy their TIPS from TreasuryDirect, but I chose to buy my TIPS from Vanguard. The purchase interface steps have a few quirks for a novice, but they are easily figured out.
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S, I am with you that I can’t totally explain, nor do myself, all the math calculations related to TIPS on TIPSWATCH.com. But I do understand TIPS are a good tool to address inflation risk. A recent retire with style episode #235 stated, “Inflation protection is strongest when layered across multiple tools—including delayed Social Security, TIPS, I Bonds, and appropriately sized equity exposure”. I already had money in a short term TIPS fund, but my understanding was that holding individual TIPS to maturity in a tax sheltered account in a ladder that matched future yearly liabilities (i.e. expenses) was superior to just a TIPS fund which can go down in value like any bond fund can. But I was also daunted with HOW to set up a TIPS ladder, as a person who had never bought individual bonds or stocks. Fortunately, Laura Kelly explained what I needed to know in a HD posting (humbledollar.com/2024/09/laying-down-a-floor/), then I supplemented with the Berger video previously mentioned. So I started with a short smallish 5-year bridge ladder. All went well in the purchasing, the rungs have not started to expire yet. Subsequently, this spring I built a larger longer ladder. Some people buy their TIPS from TreasuryDirect, but I chose to buy my TIPS from Vanguard. The purchase interface steps have a few quirks for a novice, but they are easily figured out.
Post: Treasury Inflation Protected Securities (TIPS) are a Generational Bargain Right Now
Link to comment from July 28, 2026