The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/personally-when-i-get-to-your-point-ill-keep-my-30623090.aspx

Subject:  Re: Short-term TIPS Date:  4/5/2013  9:19 AM
Author:  JLC Number:  71722 of 75339

Personally when I get to your point, I'll keep my cash in a money market fund.

TIPS sound great but two things against them: One, the governmnet defines what the inflation rate is and I'm sure you've noticed that the real world inflation doesn't match the government quote (the gov't uses housing prices as a major component and with housing falling the past few year, inflation is zero). Also, inflation is very individualistic in that what I want/need is different from what you want/need and what we pay for that is very different. And Two, if you have to sell before maturity, you could lose capital.

With a money market fund, you at least get current rates and can get your money at any time.

JLC
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us