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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