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Personal Investments • TIPS and CPI

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So how does tipsladder handle this inflation component? (because it's obviously unknown)
For example 2040, 912810QF8 × 15 = $22,871 purchase cost; $21,813 Principal, $3,449 Interest Total income = $25,262. How does it arrive at that particular principal & interest breakdown and where does inflation component come into play?
As I understand it, Tipsladder deals in "real" dollars--that is, in buying power. It doesn't predict. All the numbers you see in Tipsladder are in current dollars.

So if an dollar buys one can of Coke, and you decide that you need enough buying power for thirty thousand cans of Coke per year for ten years, you enter thirty thousand in Tipsladder. You have no idea what exact dollar amount you'll receive in the ninth year, but you know that it is extremely likely to be enough to buy thirty thousand cans of Coke.

(Yes, I realize that Coke isn't guaranteed to precisely track the inflation wave. But you see what I mean?)

Statistics: Posted by BirdFood — Wed Sep 11, 2024 6:16 pm — Replies 13 — Views 612



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