In case of inflation, TIPS will preserve the buying power. However, inflation is also likely to cause interest rate increases, which would lower the TIPS fund NAV (or TIPS not held to maturity). If one plans to use TIPS funds to fund expenses, this may present a problem.
So TIPS ladder held to maturity is probably the best option if inflation and interest rate risk are primary concerns.
So TIPS ladder held to maturity is probably the best option if inflation and interest rate risk are primary concerns.
Statistics: Posted by sk.dolcevita — Fri Apr 26, 2024 6:38 pm — Replies 20 — Views 1588
