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Straight Story: Guarding your nest egg
Economics editor Chris Farrell
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About the author
Christopher Farrell is economics editor of Marketplace Money, a nationally syndicated one-hour weekly personal finance show produced by American Public Media.
It seems like the TIPS only supply ~2%interest +~2%inflation (target). The 10year Tnotes are now at 4%. How likely is it that the auctions will require higher returns e.g. inflation + 3% any time soon?
Thanks for taking on this subject so honestly.
I certainly agree that Wall Street is conflicted...they are basically sales people without full knowledge or concern about the product they sell. However, I think 60% S and P and 40 TIPS is a little too simple. One has to have international stocks and Small Caps. Ideally ones holding should be divided among 6 or 7 holdings (indexes) for core holdings..anything else is gambling. About the only risks that are manageable are individual stock risk and diversification across type of investment such as stocks, bonds, real estate (or work until you are 87).
