My wishy washy take...because there is no right answer at this time.My fixed has been 100% TIPS for many years. I don't care what inflation does. Less than expected, more than expected.... I don't care. If it's less, it will be slightly less. If it's more, it could be WAY more. People used to tell me here that I was nuts because inflation was dead. Until it wasn't. I own a ten year ladder, but an ETF would be like exactly the same thing, only different. I really don't understand why some feel compelled to spread it out between TIPS and nominals. It's just fixed income, held for safety, and TIPS are the safest investment on the face of the planet. Image may be NSFW.
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100% TIPS? Vineviz took a quick look at my situation (all fixed...all individual...ER = 0) and said that I was a 100% TIPS candidate. I don't think you are nuts; inflation isn't dead; inflation marches on....until it doesn't. Image may be NSFW.
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I'm tempted but I'm thinking half TIPS and half nominals.
Why nominals?
TIPS pays out semi-annually, so you can only get paid on JAN-FEB-APR-JUL-AUG-OCT. You already knew. So do treasuries with all the usual exceptions, but some CDs payout monthly.
Sometimes TIPS win and sometimes nominals win. I usually stick with shorter nominals and longer TIPS except for a non-rolling TIPS ladder. It depends on the payouts. With nominals I'd pick 3 months to 5 years; with TIPS, I like the 10 year at auction. With CDs, I'll go with monthly payouts unless I have to forfeit too many basis points.
Bottom line: I probably should go 100% TIPS, but nominals are attractive especially the 5% payouts or even the 4.5% payouts.
Some days, I think, just go 100% SCHP and call it a day....maybe when I'm 90?
SCHP monthly payouts: https://stockanalysis.com/etf/schp/dividend/
SCHP facts: https://www.schwabassetmanagement.com/r ... fact-sheet
Statistics: Posted by hudson — Sat Nov 16, 2024 4:40 am
