Investing
4 months ago

I-bonds vs TIPS vs bond funds — what's the best inflation protection for the bond portion?

17

I'm 60 and shifting more of my portfolio toward bonds as I approach retirement. I want the bond portion of my portfolio to protect against inflation. Should I buy I-bonds (10k annual limit per person), TIPS (individual bonds or a fund like VIPSX), or stick with a total bond market fund (BND)? How do I-bonds and TIPS actually work when inflation changes? Are the current fixed rates on I-bonds attractive?

DR
@drodler

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