Actually it is incorrect to say that TIPS can decline with deflation. There is a built in floor at zero, that is even with negative inflation (deflation) the principal amount does not decline.
Choosing Your Portfolio Risk Tolerance [View article]
Geoff,
Thanks for such a comprehensive and detailed piece. I am rather surprised that no mention in made of annuities as a suitable tool to address both risks. Obviously inflation comes into play over any long horizon but there is so much value in being able to plan on an income over ones life, I do not understand why they are not included in analyses like the ones you described here.
Where Are the TIPS Strips? [View article]
On Nov 11 12:55 PM dr.doolittle wrote:
> say what?
Choosing Your Portfolio Risk Tolerance [View article]
Thanks for such a comprehensive and detailed piece. I am rather surprised that no mention in made of annuities as a suitable tool to address both risks. Obviously inflation comes into play over any long horizon but there is so much value in being able to plan on an income over ones life, I do not understand why they are not included in analyses like the ones you described here.