Monday, November 14, 2011

Are TIPS Really Safe and Worry-Free?

I'm fortunate to now be a monthly columnist at Advisor Perspectives on topics related to de-accumulation strategies and safe withdrawal rates.  Although I will make much more effort to focus on quality (as some of my blog entries tend to be rough drafts that end up getting re-written multiple times), the topics I discuss in my columns will be the same sorts of issues I've been discussing here.

My first column is available now, "Are TIPS Really Safe and Worry-Free?"  

My purpose is not to do a hatchet job on TIPS.  I think TIPS are very important and useful.  But it troubles me that the same people who will focus on how potentially dangerous and risky it is to use a well-balanced portfolio of stocks and bonds for retirement, will at the same time use terms such as "risk free" or "safe" or "worry-free" when talking about TIPS.  Let's not get our hopes up too much about TIPS.  They can be an important component of anyone's portfolio, and they are certainly an important component of my own, but I wouldn't want to put everything into TIPS.  Recognizing this is the point of the article.  Please have a look.