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Subject:  Short-term TIPS Date:  4/4/2013  7:40 PM
Author:  donmanning Number:  71713 of 88008

I'm retired (age 70) and am very concerned about liquidity and cash flow for the coming years. I have a money market fund with enough cash to cover the next 3 years. For years 4-6 I own regular TIPS (VIPSX). I am getting very concerned that rising interest rates will cause the regular TIPS to lose value, and am considering selling VIPSX and buying VITP.

With the liquidity needs I've stated above, I'd appreciate comments on the pros and cons of owning short-term TIPS (VTIP) versus regular TIPS (VIPSX), versus a money market fund or CD ladder. Does it seem that I have too much cash in the money market fund?

Thanks in advance for what I know will be foolish advice.

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