On Retirement Income, Part 9: TIPS Q&A
TIPS investing is complicated! We answer some of your questions here.
TIPS investing is complicated! We answer some of your questions here.
Well, it has been a while, but our fictional friends Bob and Fred are finally getting some attention again. We’re pulling their financial plan out of stasis to illustrate how we can (A) build an inflation-protected income bridge from retirement to age 70, enabling someone to maximize benefits by delaying Social Security claiming and (B) add a long-term stream of inflation-protected income on top of Social Security, to fill a gap between promised benefits and inflexible annual spending needs.
I’m excited to announce the publication on Advisor Perspectives of the first article in a five-part series entitled “Long-Horizon Investing”!
The headline rate on I-Bonds has fallen below T-Bills, CDs, etc. Round Table presents a Kenny Rogers-inspired framework for considering your I-Bond options now.
We published earlier articles noting (1) the current bear market didn’t exist in monthly data and (2) the current yield curve inversion didn’t exist in TIPS data. Neither of those observations is still true.
This article presents an in-depth compare/contrast between I-Bonds and TIPS, with basic facts and color commentary—including several surprising discoveries!
Treasury Inflation-Protected Securities (TIPS) can be used to build inflation-protected income to cover annual spending needs in retirement. Find out how Round Table builds TIPS portfolios for retirement income in this article.
The current, much-ballyhooed yield curve inversion is driven entirely by the term structure of inflation expectations!
In the past 18 months, the inflation rate has jumped more than 6X, but the cost to purchase inflation-protected income with TIPS has declined ~20%! Find out how, why, and what you can potentially do to take advantage.
I-Bonds are paying a government-guaranteed rate that is higher than what is available in other types of bonds. Is this a “free lunch”? If so, how can that be?