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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75801  
Subject: Re: Short-term TIPS Date: 4/5/2013 9:19 AM
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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
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