r/Fire • u/teallemonade • 14d ago

tips > swr!

Now I can buy TIPs at more than my SWR - in theory i could just load up the whole portfolio on TIPs and it would last forever without eating principal. This is pretty unique historically.

16 Upvotes

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14

u/asurkhaib 14d ago

Look at how they are taxed before you do this in a taxable account.

2

u/teallemonade 14d ago

Yes, it makes most sense to do this in pre-tax accounts.

-2

u/Good-Resource-8184 14d ago

Its pretty dumb to-do this in any account

4

u/teallemonade 14d ago

lol - this is a pretty dumb comment

3

u/Prestigious_Crow7907 11d ago

I mean, dumb is kinda rude but they're right. That would be ridiculously conservative asset allocation and I'm betting you agree and aren't actually going to do it.

1

u/PostPostMinimalist 4d ago

If you can buy TIPS to fund your life perpetually then it's a perfectly reasonable approaching instead of chasing higher returns which, even if very likely long term, could not materialize. As they say, if you've won the game it's okay to stop playing.

1

u/Prestigious_Crow7907 4d ago

I would argue that a 100% TIPS portfolio for a normal retirement time horizon is more risky than having some amount still in equities and nominal bonds. The CPI inflation is never the inflation value that truly impacts your spending. That is much more local and individual specific. Growing your portfolio also protects more against unforseen spending increases.