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Subject:  Re: TIPS: To Protect Yourself Date:  12/9/2008  8:30 AM
Author:  Lokicious Number:  25268 of 35624

Concerning how much to allocate, I've read various recommendations. Kenneth Volpert, manager of Vanguard Inflation Protected Securities (VIPSX) suggests that investors/retirees split Treasury holdings between conventional bonds and TIPS. John Brynjolfsson, who ran the granddaddy of TIPS funds, Pimco Real Return Institutional, advises splitting a diversified portfolio into three categories: stocks, bonds and such assets as TIPS, commodities and real estate that help offset rising prices and says, "Bonds protect against deflation. TIPS protect against inflation."

Again, the FAQs on this board are much more complete and unbiased than any advice you will get from investment "professionals," even Vanguard, because we include CDs in the mix, and they deal in the world on bonds and bond funds.

Listing TIPS with commodities and real estate as inflation protection is dangerous thinking: TI