Only if you paid more than face value, or sold before maturity. The value at maturity will never be less than face value.Of course, I forgot that in the case of negative inflation, I would lose money in TIPS.
And by definition, in deflation every dollar is worth more.
That sounds like a perfectly reasonable scenario for building a TIPS ladder for retirement. If $1.75 million is all of your assets, I think I’d hesitate to put it ALL in that ultra-safe but low-return structure, but it’s not the very worst idea to put a substantial percentage in.
My back-of-the-envelope calculation for how much money my husband and I would need in retirement was,
Yearly need: $100K
Yearly from Soc Sec (based on the current SS statement): ~$50K
Yearly amount we need to provide from retirement accounts: $50K
Total years in retirement (65-100): 35
Total amount needed: $1.75 M
If I have $1.75M in TIPS, then I figure I no longer have to 'worry' about retirement. Investing in BND seems like there is still some 'risk' that I might need to manage in the future. Is my thinking on the right track?
Statistics: Posted by BirdFood — Sat Aug 10, 2024 1:30 pm