3 ms·
One compromise is to hold the cash in US TIPs, i.e. inflation indexed bonds. There's a limit of how much you can buy each year and the interface is quite clunky
by xhkkffbf 3y ago
One compromise is to hold the cash in US TIPs, i.e. inflation indexed bonds. There's a limit of how much you can buy each year and the interface is quite clunky, but these bonds should protect against inflation.
(Note: inflation as measured by the US government. Many feel that the equations understate the real inflation.)
- djbusby 3y agoLimit is $10k/year per tax-ID, IIRC
- thunky 3y agoYou're thinking of I bonds and so is the poster you replied to. TIPS are different and there is no purchase limit. They are available as funds/ETFs.
- marcrosoft 3y agoHarry Browne didn’t like TIPs and didn’t think they would protect when things got bad. He preferred holding gold coins in a country outside the one you live in.
- ghaff 3y agoWhich seems like an utterly unrealistic strategy for most people which likely comes with many problems of its own, especially in the event of a massive financial system collapse.
- deleted 3y ago[deleted]
- DennisP 3y agoGold, and t-bills for the cash portion. They do well at different times than gold. Over the past century, t-bill rates on average have pretty closely matched inflation. Browne didn't advocate holding all your gold as physical coins in another country, because he wanted people to rebalance annually, which would be pretty difficult if the gold were held that way.