There are some very good threads on the BH board concerning TIPS and TipsWatch is an excellent source of information. Personally I've become a fan of liability matching with TIPs held to maturity and have invested a portion of my portfolio accordingly.


I'm sure on days like today, those they are covered by TIPS, CDs, MYGAs, etc. are not too stressed with the market. Those with a lot of stocks are in another boat, especially if they are retired and not covered by pensions.

Maybe this is not the best place to post this but one of the issues in society is the dichotomy between the "old" people with generous pensions and where their 401K savings is just "play" money and those whose retirement is (or will be) largely dependent on 401K savings and social security. You can see here and over at bogleheads, the flippant comments about money that come from those people who just happened to be born at the right time when pensions and working with one company was common place.

Back to the TIPS, they probably should be part of most portfolios. How much would depend on a lot of factors.