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iShares Trust - iShares TIPS Bond ETF Message Board

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  • bergholt@sbcglobal.net bergholt Aug 10, 2010 12:15 AM Flag

    TIPS doing quite well considering

    I wish I had your talent for crunching numbers. You most assuredly missed your calling. You should have worked for the Federal Budget Office (then, again, maybe you did).

    That having been said, I just look at "in" and "out", and so long as my "in" is bigger than my "out", I'm a happy camper.

    Sigh (as you say). I wish the Feds could figure "in" and "out."

    You said you were retired. Maybe you should volunteer to help out.

    Tee Hee.

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    • My biggest concern is that I may outlive my retirement savings. Here's the good news though. There is a mechanism in place that balances all this out.

      Lifespan vs. Retirement Savings

      1. The worse my retirement savings do, the more stressed out I become.
      2. The more stressed out I become, the shorter my lifespan will be.
      3. The shorter my lifespan will be, the less retirement savings I will need.
      4. The less retirement savings I will need, the less stressed out I become.
      5. The less stressed out I become, the happier I will be!

      As you can see, the worse my retirement savings do, the happier I will be.

      I think you are right. I really should have worked for the Federal Budget Office. Hahaha!!! ;)

      Sigh.

      In all seriousness, since the 5-Year TIPS and 30-Year I-Bonds earn pretty much 0% over inflation now and the government will tax the inflationary gains, I think it is pretty much a given that my retirement savings will be doing very poorly if this continues.

      It is becoming increasingly difficult to safely grow retirement savings. I factored that in starting in 2004. I cut my spending to match the new reality. Those who have yet to factor it in are going to end up being very disappointed.

      Many retirement calculators still default to 8%. Good luck on that one with a mix of stocks and bonds long-term from these levels. For one thing, the days of making huge gains on bonds is coming to an end. In my opinion, you can't start with long-term rates at 4% and somehow end up earning anything close to 8%.

      http://cgi.money.cnn.com/tools/savingscalc/savingscalc.html

      It doesn't help that that pensions are woefully underfunded.

      http://www.chicagotribune.com/news/opinion/ct-oped-0810-byrne-20100810,0,4297678.column

      "Illinois public employees who think the state constitution guarantees that they'll get all their pension benefits may have another think coming."

 
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