Personal Investments • Re: TIPS retirement question related to upcoming auction

I am retiring in Summer at 60. I am at 60-40, current fixed is in MM.

I am new to tips and there is a 10Year auction in Jan, 20 year in Feb and 5 year in April.

Do you recommend : 5 year, 10 year, 20 year or buying a TIPS ETF ?

I regard TIPS as a place to put your money, a place that keeps the principal fresh (keeps it up with inflation) until you want to spend it.

So the 5/10/20 year choice would be determined by when you expect to need the money. You can also buy preexisting TIPS that mature almost any year except for 2035-2039. (And that gap will shrink, year by year.)

I don't want an ETF; that would eliminate the predictability that I buy TIPS for.

Is there a reason not to do TIPS ?

The main issue I can think of is that TIPS taxation is complicated in a taxable account.

Edited to add: Oh, and like any bond, if you sell it before it matures, the amount you'll get for it is unpredictable. I plan to hold mine to maturity.

I am guessing the advantage of 10 Year Tips over 10 Year Treasury is inflation risk

What is the typical view from Boggleheads on TIPs, when to buy them, which type and what is a good yield to look for when the auction is announced.
The January Auction is announced on the 16th.

My view for myself is that a TIPS ladder (a bunch of individual TIPS, some maturing every year for a number of years) is a dandy place to put the bond portion of my retirement savings.

Statistics: Posted by BirdFood — Wed Jan 15, 2025 2:49 pm

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