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Galeno Responds To My Idea of Swapping a Total Bond Market Fund for TIPS It depends on what's your purpose for your fixed income portion of your portfolio. If you want to tread water, go with TIPS. If you want to try and make some money with your FI, stick with the bond fund.

My purpose is to try to make some money, but also NOT TO LOSE money. I guess I just don't see how the bond index fund can do much better than the TIPS since interest rates can only go to ZERO and we ain't too far from there right now. If I bot a 30 year TIPS now, I'd get the 2.5% coupon guaranteed, and if I held to maturity I'd have no risk of deflation causing loss of principal. Am I missing something here?

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