TIPS

Smart-Preferences123

Exactly this. The counter party risk with TIPS is the money printer guys. I think a credit default swap at AIG in 2008 was a safer bet.

anally_ExpressUrself

Furthermore, TIPS pays out based on a number that the US government makes up. These days, if it's the wrong number, you get fired. How much do you trust the government to generate a fair number?

Delicious-Smoke-9783

Finally a real answer in all the doomer bullshit and gallows humor. Continue to buy broad stock indexes. But mix in TIPS or other securities that will beat inflation so that you have some dry powder if we do get a pullback that isn’t crushed by the falling USD. Gold and crypto are not negatively correlated to stock market crashes.

Own-Character395

I am moving to a more defensive position. I was at about 16% bonds and I'm now at 23% on my way to 25%. Not doing it all at once to get an average price. I also diversified my bonds to include foreign bonds (BNDX) as well as TIPS (SCHP for now. May but some directly later.) I was at 1% gold and over the last few months have increased that to 2%. I would like it to be 5% but I'll do that over years rather than but at what might be the high. I have also shifted from about 10% foreign equities to 15% For domestic equities I have shifted to about 15% in "defensive" sectors including consumer staples, utilities, healthcare, and 10% into sectors that sell hard assets(REITs, energy and mining). That still leaves 25% in the s&p which I will keep because any further movement would result in big taxable gains, otherwise I would bring it down to 20%

PleasantTrust522

Nah, they're releasing the CPI report because they need it for the cost of living adjustments of Social Security and payouts for TIPS (inflation-linked bonds) holders. Although I do think it's ridiculous that they're sitting on the employment report (all data already collected during September) and simply not releasing it. Powell was pretty clear that he hadn't seen the number. I do agree with you that the employment report was probably good. Still, can't wait for CPI. If it's bad, the Fed will already be in its blackout period so we might get a genuine surprise at the FOMC meeting. Not likely at all, but possible.

PleasantTrust522

No, the CPI report is officially scheduled for release on Oct 24 despite the shutdown. Some BLS employees have been called back to prepare it, as it is necessary for Social Security cost of living adjustments and for TIPS payouts.

kiwimancy

They should. Real assets like gold and TIPS help diversify a portfolio which contains a large allocation to nominal bonds.

GoldChallenge6287

Among other things. Gold has no “real return” factor - interest, dividends, growth. It’s return is more or less the rate of inflation. This hedge is replicated partially by TIPS, REITs and global equity exposure but over a long timeframe, gold either drastically underperforms equities or outperforms for decade long stretches. So yes, right now it seems like a missed opportunity but over 20-30 years, that 5% allocation may cause a 200bp drag on your ARR.

jart

Three years ago America froze $300b of Russian money held in Western banks. Russia then adopted the gold standard for the rouble. So the US Treasury and London Bullion Market Association banned trading gold with Russia too. This shook up BRICSA and made them all goldbugs. Most of the retail demand is coming from those regions. We're also seeing an outflow from treasuries, which used to be a way for investors to extract surplus value from American labor. Unfortunately the U.S. has been debasing the dollar to fund retirements, which on the spending side now consumes more than half of the revenue that the federal government collects. They can't tell the truth about inflation because retirees all hold TIPS so they'd need to give even more to retirees if CPI went way up. Since US retirees hold more treasuries than anyone else, they're starting to realize they've actually been picking their own pockets and are starting to buy gold. Goldman said a month ago when it was $3500/oz that if just 1% of them do this, then it's gonna go to $5000/oz. The Chinese are promoting their digital yuan as a new international currency, and they recently made it exchangeable for gold, although they peg it at the 200 day SMA so it's in the interests of the U.S. to keep gold prices high to keep the dollar competitive.

oldmanballsacks81

I am glad I rebalanced my 401k from 100% stocks to 50% international, 30% low volatility stocks, rest in TIPS. I am out of US markets until taco is in charge. USD is devaluating rapidly ,inflation out of control, economy in turmoil, AI bubble, people using buy now pay later to buy food wtf.... Had a nice ride for the last 18 years and rode the full bull market and now time to preserve those retirement gains.

ConcentrateOk523

I am stocks and bonds with basically a four fund portfolio and TIPS. I do not believe in gold. My issue is gold does not produce any income and physical gold is just for some dealer to make a huge profit. What would five percent in gold due for my portfolio?

MetricT

It depends on where you work. 403b's are allowed to invest in gold funds like GLD provided your employers chooses to allow that. Mine does not. :-/ I have already written HR a letter asking them to change that policy, because it's a dumb-ass policy. I *do* have TIPS (FIPDX), and bought a bunch today. I'm 50/50 FSAGX/FIPDX now.

weasler7

Ugh. Gold and TIPS is all that is accessible for Fidelity 403b mutual funds??

MetricT

Until today, it was 85% FSAGX/15% FIPDX (TIPS fund) in my main retirement. The market is acting unusually odd today, even by recent standards, so I decided to de-risk, so I'm 50/50 now.

weasler7

I think TIPS is a decent bet. My only concern would be if a political loyalist is appointed to the BLS and juices the CPI numbers

Aureliamnissan

It is generally treasury bond holders, but [this explains it](https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/) > The national debt is the amount of money the federal government has borrowed to cover the outstanding balance of expenses incurred over time. In a given fiscal year (FY), when spending (ex. money for roadways) exceeds revenue (ex. money from federal income tax), a budget deficit results. To pay for this deficit, the federal government borrows money by selling marketable securities such as Treasury bonds, bills, notes, floating rate notes, and Treasury inflation-protected securities (TIPS). The national debt is the accumulation of this borrowing along with associated interest owed to the investors who purchased these securities. As the federal government experiences reoccurring deficits, which is common, the national debt grows.

Hopperkuh

Since you cannot buy Gold, you’d use **TIPS (Treasury Inflation-Protected Securities)**. They don’t move the same way, but they *do* protect you from inflation and dollar devaluation risk.

curious_investing

There must be some sort of bond option, however limited, in your 403b. You could check to see if your plan allows you to take any of your money out of your 403b (assuming you aren't yet 59.5) and move it to a Traditional IRA. Then you would have all the options you need. I've created a TIPS ladder that, along with a small pension and SS at 70, will give me the necessary income floor through 2055. While there is always the small risk of deflation, the TIPS assures that a portion of my investments will keep up with inflation. The TIPS ladder , and nominal bonds that will cover 3 to 5 years of equity withdrawls in a down market, have also eased my mind so that I can keep 70 to 75% in equities no matter what happens.

ikeepeatingandeating

I'm "lucky" that my retirement is coming up, so my planned increase in fixed income coincides with a lot of current fear of a market crash. My plan was always to go from 20% to 30% fixed, 2 years of expenses in cash and 5 years in bonds. My "flight to safety" was to pivot half of my bonds into TIPS, and half into intermediate duration bonds (vs. longer duration, say BND or similar). I'm a dumb, but I'm making a tiny bet that TIPS could compensate for inflation and/or dollar devaluation, while still being in line with my overall investment strategy. I'd love to have holes poked in this plan.

kiwimancy

Sure you would. If CPI increases in a one-off event, TIPS will increase in nominal value by that amount.

therealjerseytom

> I want to invest in something that's going to be inflation proof or hold it's value TIPS. They are bonds specifically out there to be adjusted for inflation, and maybe a small real return on top of that. Exactly what you're looking for.

Ashhh1991

This is the correct answer that matches EXACTLY what you asked for. Keep in mind that you may still need to pay taxes on your profit, which may make it so that you lost money. Treasury Inflation-Protected Securities (TIPS) * **What they are:** Treasuries whose *principal value adjusts with inflation* (CPI). * **How it works:** The bond’s face value rises with inflation, and interest payments are based on the new amount. * **Pros:** Direct inflation protection; backed by the U.S. government. * **Cons:** Taxable inflation adjustments (even before maturity) unless held in a tax-advantaged account. Anything else (Gold, Bitcoin, Stocks etc) is not guaranteed to match inflation.

skilliard7

recession hedge - 20 or 30 year US bonds stagflation hedge - 5 year US TIPS Aiming for high returns without too much exposure to AI- REITs and some international stocks.

Key-Boat-7519

Use a bucket approach: lock in 10–15 years of withdrawals with safe ladders, keep the rest in a balanced stock sleeve for growth. Math check: $24k from $420k is \~5.7%; for a 15‑year runway that’s workable if you time-segment. I’d do 2 years in T‑Bills/HYSA (\~$48k), a 5‑year Treasury/TIPS ladder for years 3–7 (\~$120k), and years 8–15 in intermediate Treasuries or a small period‑certain SPIA/MYGA (\~$168k). Put the remaining \~20–25% in a broad stock index (US total market + some international). Spend from cash, roll the ladder annually, and only refill from stocks in good years; in bad years, refill from bonds. This cuts sequence‑of‑returns risk while still letting a growth sleeve compound. Mind the 457 tax angle (likely no early penalty, but withhold taxes), and revisit the mix yearly so RMD timing at 73 doesn’t blindside you. I’ve used Vanguard LifeStrategy Income for the growth sleeve and Schwab’s CD/Treasury ladder tools for years 1–10; added a small MYGA via [gainbridge.io](http://gainbridge.io) to lock a fixed rate for years 11–15. Bottom line: match the first decade-plus with safe ladders/MYGA and keep a \~40/60-ish stock/bond sleeve to grow the rest while pulling $24k.

theTrueLodge

That’s a fair point. The goal here isn’t to claim zero risk, but to balance sequence-of-return risk with inflation exposure over a 25-year horizon. A few clarifications: The 50% bond slice is diversified (not all intermediate duration), including TIPS and short-term positions that soften rate sensitivity. The equity portion (dividend + total-market) provides inflation-linked growth potential. “Minimal risk” here means relative to an all-stock or concentrated-stock position, not risk-free. Every allocation trades one type of risk (inflation) for another (volatility). For stronger inflation hedging, you could tilt 5–10% toward real assets or commodities (e.g. gold, energy, or REIT ETFs) ,but those come with higher volatility and correlation swings.

juugcatm

iShares has LDRT, LDRI, LDRC, LDRH which are 1-5 year maturity auto-ladder ETFs. They invest in treasuries, TIPS, inv grade, and high yield bonds respectively so you can choose your risk profile.

Specialist_Fig9458

TIPS and chill brother. Throw a few grand around in options for fun and entertainment

ninjagorilla

Look there are a couple options. There are some more recent papers that say that 100% equity portfolios aren’t inferior to a more stock or bond portfolio as long as you’re at at 4% withdrawal rate. That being said I agree with you on the tech bubble. I don’t know when but we are probably gonna have a pop sometime and it will probably come with a pretty big market drop and probably a recession. Crashed early in a retirement portfolio life cycle are extra bad compared to later ones. You didn’t mention in the context of your overall retirement savings what % nvidia is, but it still makes up 7.5% of the sp500 just by itself… so if you are all in on voo 7% of your worth is nvidia. What is your TOTAL exposure to nvidia: personal stocks +7% of sp500 holdings. If it’s more than 20% is definitely trim back to at least that number. I personally am selling my nvidia this week as well. Partly bc of bubble fears though the other thing concerning me is we’re starting to see a rising number of vendor financing deals between different ai companies and nvidia is part of several of them. Any stumble from any part of the chain will make the whole pyramid collapse even worse than before. To me it’s enough of a shock to my thesis I think I’m going to take my profits. But that’s just me. I haven’t seen apple as involved in many of these deals but same logic as far as portfolio % applies. As far as tax implications that’s a better question for an accountant, but typically you want to sell from tax advantaged accounts first and brokerages last. But that being said, I wouldn’t let the tax tail wag the dog on making smart decisions, jsut make sure you earmark some do the profits for taxes Also remeber it’s not all or nothing, you could for example sell 1/2, or 10% a month for thr next 12 months or whatever . As far as safer places to go I think TIPS bonds are about as safe as it gets if a bit boring. If you want to stay in equities brk b is about as safe as it gets. It might still fall in a bubble but it shouldn’t be as far.

theTrueLodge

I would look an ETF of some kind. Someone here recommended a world market one to hedge against volatility in the U.S. or any country. You’ll need to do your homework. Something like this might give you minimal risk - • 50% bonds (core intermediate-term, e.g. BND or AGG) • 10% short-term bonds or CDs (for near-term income stability) • 20% dividend/value stocks (e.g. SCHD or VYM) • 10% total-market or global equities (e.g. VTI or VT) • 5% inflation-protected bonds (TIPS) (e.g. SCHP or VTIP) • 5% cash or money-market fund (for immediate liquidity)

BuriedMystic

Vanguard Target Date 2025, VTTVX. It’s half stocks and half bonds/TIPS.

fiscal_fallacy

Gold and a stable income job. Maybe TIPS but gold seems simpler

Rom2814

Exactly - I built a TIPS ladder that will cover essential expenses between ages 57 and 67 (earliest I’d plan to take social security). That’s about half my bond allocation, the rest in BND and VGIT. From everything I’ve been reading, inflation can devour savings in retirement far more than a market downturn since it “forces” high withdrawal to maintain buying power - TIPS should take off some of the pressure in the case markets are not giving good returns and inflation is high.

gpunotpsu

They will if you buy TIPS.

xploeris

"All investment entails risk." Treasuries are pretty safe. Or if you're worried about inflation, there's Treasury Inflation-Protected Securities (TIPS). Lower yield but you get some protection if inflation rises more than expected. I like SGOV and STIP respectively. VT will rise and fall with the global market, but it's one of the broadest stock ETFs in existence. Note that it's biased towards US holdings because we have a lot of massive publicly-traded companies; if you want a more balanced mix, add some VXUS or one of the other ex-US international funds. I don't like gold as an asset because it produces nothing and tends to be overbought by doomers and gold bugs IMO, but it's unlikely to fall far, and will probably go up. There's also all the usual recession hedges: utilities, energy, consumer goods, etc. Defense could be a good sector if you think economic/trade wars will lead to increased international aggression, and it tends to be propped up by public spending in any case. Holding cash equivalents makes sense if you think the market's going to downtrend or crash soon. If you think the market will hold steady or go up, better to lump sum now. If you're not sure and want the least possible risk of guessing wrong, DCA.

max_strength_placebo

Monte Carlo models are only as good as the data used for the simulations. IMO people treat Monte Carlo far too seriously. at best it's just an educated guess that may or may not play out as planned IRL. but to answer the question: >Are people underestimating inflation risk… or just ignoring it because it’s depressing? the last few decades, inflation was extremely low by historical standards so many people have forgotten to adjust for inflation. interest rates were also abnormally low by historical standards. Howard Marks wrote a 2022 memo on this topic, how very few people in the finance industry have experience with rising rates and relatively elevated inflation. https://www.oaktreecapital.com/insights/memo/sea-change elevated inflation also changes investing outcomes. lots of FIRE people are assuming the 2010-2012 bear market will generalize indefinitely into the future. But they're gonna be in for a shock, one way or another. They're simply not prepared for TIPS or REITs (or anything other than VTSAX) to be the best performing investment for 15 years. adjust for inflation and the S&P 500 was underwater about 1866 to 1992, and 2000 to 2014. https://www.macrotrends.net/2324/sp-500-historical-chart-data to quote John Hussman: >he total return of the S&P 500 lagged Treasury bonds from 1929-1950, 1968-1987, and the 22-year stretch from 1998 to 2020 (3/23/98-3/23/20: 5.27% vs 5.32% annually), among other sub-periods. That’s 62 years of the 96-year period since 1929 – nearly two-thirds of history. https://www.hussmanfunds.com/comment/mc250720/

CharacterSpecific81

Best move here is to lock in a 5–7 year cash-flow runway (T-bills/HYSA for 1–2 years, then a TIPS + 3–5 year MYGA ladder) so you don’t have to sell equities during a bad decade. Concrete steps: \- Calculate essential spend minus Social Security/pension; that annual gap is what the ladder should cover. \- Keep MYGAs short and staggered; use ones with 10% free withdrawals so you have flexibility. Pair with a TIPS ladder maturing each year. \- Put TIPS in the IRA (avoids nasty tax issues), keep equities in the Roth for growth. Add I Bonds at TreasuryDirect if you can. \- Consider bumping real-asset diversifiers: either nudge gold to \~5–7% or use a low-cost managed futures fund for inflation shocks. \- Use a guardrail withdrawal rule (e.g., Guyton-Klinger) to auto-adjust spending and trigger equity-to-runway refills after up years. I’ve used Blueprint Income and Fidelity’s fixed income ladder tools for comparisons; [gainbridge.io](http://gainbridge.io) made actually buying a small MYGA slice straightforward. Give yourself that 5–7 year guaranteed runway so market drama doesn’t force equity sales.

WileyCoyote7

Yes, a common concern for readers. I am trying to give enough depth to see the whole picture, but not bog them down with specific funds/etfs they need to look up. Do you have suggestions on how to consolidate while still getting the info across? And yes, no doubt I need to pare down equities. No question there. The classic 60-40 seems (to me) to be a bit outdated in terms of the expected length of retirement; people are living longer. I think, and correct me if I’m wrong, the 60-40 was only expected to grow 2-3% per year when it was devised, for a 15 year (on average) expected retirement before death. I am hoping for twice that, knock on wood. Also, as I commented to another on this thread, I am concerned that since we have not had an extended stagflation market like the mid-70’s to early 80’s again (yet) to “test” the 60-40, as well as the Boglehead three-fund approach. I think the high inflation coupled with basically dead economic growth, huge (for then) debt/gdp, etc. would have made real returns difficult to say the least. The international fund in the Boglehead triad may do well (enough), but the domestic would have serious challenges and the bond as well with high inflation and interest rates leading to lower prices. Adding TIPS (which didn’t exist at the time), giving some extra weight for ultra-short (1-year) bonds, as well as gold/mining will (I think) help to modify the 60-40/three-bond approach to one that’ll fare decently. I don’t know…I need a stiff drink I think.

WillFromGainbridge

Your concern about a potential correction makes sense given where we are in the cycle, but I'd suggest looking at some guaranteed income products alongside what you're already doing. Being three years into retirement means you've got a decent runway to see how this plays out, but that stagflation scenario you mentioned could be rougher on traditional portfolios than people think. One thing that jumps out is your heavy equity weighting at 84%. While I get the inflation hedge logic, you might want to consider locking in some guaranteed rates now while they're still decent. Multi-year guaranteed annuities (MYGAs) are basically like CDs but often with better rates and more flexibility. Since you're already retired, you don't have the same early withdrawal penalty concerns if you're past 59½, and some products allow annual withdrawals if you need liquidity. The other piece is your bond allocation seems pretty light for someone worried about stagflation. TIPS make sense, but short-term treasuries might not keep up if we really do hit that scenario. Fixed annuities could give you that guaranteed income floor while still letting you keep most of your portfolio positioned for the correction you're expecting. Just something to think about as you rebalance - having multiple income streams becomes more valuable when markets get choppy. Your employer plan limitations are frustrating but pretty common. Most of the guaranteed product strategies would need to happen in your IRA or Roth anyway where you've got more control.

D74248

Do you believe that someone buying US Treasuries is not "investing"? How about a TIPS ladder?

trafficjet

You’re juggling a lot here, but keeping that heavy equit tilt while fearing a big correction and stagflation might just make stress levels spike when markets wobble. Also, holding gold acrss multiple accounts can add complexity without clear payoff, especially if rebalncing hasn’t been tackled yet. Have you thought about simplifying your allocation first to really nail down what’s working before layring on more tweaks like TIPS or extra gold?

Stock-Ad-4796

Look into short-term bond funds, corporate bond ETFs, or TIPS funds. You can also check out money market funds or high-yield savings for low risk with steady returns. Preferred stocks pay more but swing more too.

hammsfam

Diversify out of individual meme stocks you read about on reddit and into low cost broad market index funds (i.e. VT). And keep any money for a house in something like U.S. Treasuries (VGIT/VGSH depending on when you plan on buying) and/or TIPS if unexpectedly high inflation would put the target out of reach (VTIP).

Extra-Avocado8967

Solid mix overall ,adding a bit of TIPS or short-term bonds for inflation protection makes sense, just keep equity exposure balanced with your withdrawal needs.

WealthVenue

looks like a receipe for disasters, if you are new to investing, start slow and buy some Vanguard S&P 500 ETF and the rest in a TIPS ETF (Treasury Rates that are Inflation Protected), allocation could be 50/50 in each ETF. Personally a 4 corner portfolio, MidCap Value/Growth + S&P 500 + Nasdaq 100 + SmallCap Value/Growth for a total of 6 ETFs

TrickyBanana5044

I mean if its a viable option for you I wouldn't knock it. There is a value to the mental peace of having a pile of cash to avoid having to withdraw during a market downturn. Most people need to keep as much capital growing as possible so finding that balance can be tough. A reasonable approach would be 1-2 years in something like a HYSA, then the other 3-4 in something like short term bonds or other less volatile short term options. TIPS perhaps so you're not losing value to inflation. Personally, I am going for 3 years but I have baked a pretty wide margin into "number" for retirement anyways.

D74248

Do you have an asset allocation plan? If not, I suggest that you work one out and use that as a starting point. Don't make emotional decisions and don't make big moves. But at the same time don't be blind to risks. We are all in different places, but using myself as an example I have, over the past year, moved from a 60/40 portfolio to 40/60. I have increased my TIPS holdings (the bonds themselves, will hold to maturity), increased international holdings within the stock allocation and taken a value tilt in the US stocks. But most importantly, always be prepared to weather a long and deep market correction. If you cannot then that is a red flag to change your asset allocation into something that can.

skilliard7

- GDP growth projections are 1.5-2% by most economists for 2025 and 2026. 2024 was 2.8%. - CPI forecast for the next 30 years is 2.25% based on the spread between 30 year bonds and 30 year TIPS With 30 year TIPS, you get 2.516% AFTER inflation. So GDP growth would need to exceed 2.5% for fixed income to grow slower than the economy.

Ninja-Panda86

If we're entering into stagflation does it behooves us to do iBonds or TIPS or what have you?

skilliard7

It's not even currency debasement/inflation. M2 is basically the same as it was 3 years ago, and inflation is only about 3% currently. It's not inflation fears either, as the spread between 30 year TIPS and 30 year bonds is only about 2.3% - long term inflation expectations are still very low It's more that fears about currency debasement has driven a speculative bubble in gold.

D74248

> never too late to invest The question is “how”. 30 year TIPS ladder, QQQ or some plan in between?

Stitch426

Old quora post explains it nicely: https://www.quora.com/How-probable-is-it-that-the-S-P500-and-the-general-stock-market-will-provide-the-7-8-annual-historical-return-also-in-the-decades-to-come-What-are-the-underlying-assumptions-Infinite-Growth-in-productivity-and Simply put, past performance does not predict future results. 7-8% is average. Some years the average will be blown out of the park. Some years it won’t. For your planning, you can go with the average or you can cook up your own numbers. Anything over 7-8% is a bonus and helps soothe out the stress when a year comes in below that. That quora post still describes the market we are in pretty much. It won’t always be like that. You missed out on a chance to potentially make a lot of money on the stock market. Who knows what decisions you would have made back then. Who knows if you’d have held through thick and thin this whole time. Don’t kick yourself over something like that. Just invest and learn more about the economy, the market, and what variables affect stock and ETF performance. Research about why people flee to safety towards precious metals, bonds, treasuries, dividends, and TIPS. Heck, even this year was a flight towards international stocks and ETFs. Wouldn’t be surprised if there was more invested into foreign currencies as well. Some people decided to sit on cash, use a high yield savings account, use a money market account, or they opened up CDs. Just research and learn more so you can make well-informed decisions about your portfolio and diversifying your risk. Every person’s risk tolerance is different and your retirement horizon and short term goals for the money will probably be different as well. There are a lot of ways to make money. There are a lot of ways to save money too. You’re two years behind where you want to be, and that’s okay. There are people in their 60s who still haven’t saved a penny for retirement. Remember you are fortunate to have though money to invest. Some college kids just scrape up $5 a week or something like that. It’ll be okay in the end if you stay diligent and well informed about all your options. Good luck OP.

WealthVenue

I would start by buying SPY and QQQ, but not when they are reaching new high, like it is now. The best way to buy those is when the market is crashing. If you start buying when the market is reaching the top, you are very likely to lose money, and usually what that means is you will ignore your holdings for months to come to avoid seeing the blood bath. Then it's better to wait. Maybe TIPS which is the US Treasury Short Term Inflation Protected while waiting for a small correction in the market, like 10% to 20%. But don't buy NVIDIA or TELSA or whatever is the stock du jour, or worse, the hot meme stock du jour. This is a sure bet to lose money.

Ok_Reveal_6216

Why is everyone switching to TIPS and short duration today? market acting like hyperinflation is coming

D74248

You are very exposed to sequence of returns risk. One way to mitigate it is with a [Bond Tent](https://finance.yahoo.com/news/bond-tent-help-retirement-strategy-160326788.html) I am 5 years into retirement. My preference for bonds is actual bonds in the form of Treasuries, both nominal and TIPS, and defined maturity bond ETFs. All in ladders, all held to maturity/liquidation. Of course we are all in a different place.

Anon-Function6635

Partly depends on your reason for investing. If you're young and looking for the next new thing I'm sure there are a ton of flash latest-way-to-get-rich-fast investment sites. If you're older and are trying to not get screwed by the next big drop (that's me) you could read stuff like bloomberg ($$$). Seeking alpha's great for the comments but I haven't been back since they started charging. Marketwatch seems to be a lot like headlines that will piss you off enough to click on (ie clickbait) or old folks retirement info. If you're actually looking into the details of a stock, etf or cef to do comparisons morningstar ($$$) is good - it's the source for a lot of other investment sites. I just don't read the articles on morningstar. The other consideration, as mentioned in another comment below, is 'can you actually make an informed decision and act before the market has already moved?' I don't think so. I have also found the market doesn't move the way it should, even when your research is sound. Way back before AI I invested in TSMC when I read that their entire production runs had been sold even before construction on new plants had begun. How could that go wrong? Waited for years, nothing happened to the stock and I moved on. I was in the market when interest rates wer near zero, read that rates are going up and inflation will happen so I bought an etf that was supposed to be in TIPS. Inflation hit and the etf did absolutely nothing. The moral of my stories is that you can read a lot, have a specific buy based on your own conclustion, be proven right and still lose.

oojoshua

Avoid syndications. They are high risk and though they CAN return big, they often return zero ( i.e. - your principle is gone ). I fundamentally don't understand why people are so down on margin. The primary risks with buying on margin are: 1. Sequence risk ( i.e. you invest on margin at the top of the market ) 2. Margin calls in a black swan event 3. Dramatic increases in SOFR resulting in a higher margin interest rate The first risk can be addressed through dollar cost averaging. If you are investing on margin, don't do it all at once. Increase your margin % over time so you don't end up buying at the top. The second risk can be mitigated by keeping the the volatility of the portfolio under control through diversification. Adding TIPS, gold, international AA corporate bond funds and international stocks to the portfolio goes a long way. So does keeping 10% of the portfolio in money market funds. It would take a significant black swan event ( bigger than 1987's black Friday, bigger than 911, bigger than the 2008 financial crisis ) to crater a well diversified portfolio to the point where you get a margin call. Basically, if that happens, then we all have much bigger problems to worry about. To address the final risk, simply keep an eye on inflation and de-leverage if it starts to creep up. Margin rates are usually pegged to SOFR and the Fed is pretty good about communicating what it is going to do next. The only way margin rates go up significantly is if there is a ton of inflation that causes the Fed to get hawkish. You can see that coming and deleverage before it gets bad. I look at it like this: If I buy a house with 5% cash down and a 95% loan, then rent it out to tenants I've bought that house on margin. That transaction is susceptible to sequence risk ( I might have bought at the top of the housing market ) and black swan events ( war, floods, storms, asteroid impacts ). But it is generally considered to be a safe investment. This is despite the fact that real estate has high transaction costs, is generally illiquid and there is significant risk that your tenant doesn't perform for you financially. Plus, you have maintenance costs, taxes and other expenses that drag on the investment. Why wouldn't stocks be the same? The only additional risk is that you're borrowing short term and, with the Fed looking to cut rates over the next several years, that is more likely to work FOR you than AGAINST you. You are buying an asset that has an underlying value and, historically, has earned around 10% annually on average. Borrowing at 5% do to that just makes sense. So my advice is this. If you want to improve your returns over a **long period of time**, then using margin and dollar cost averaging to expand a **well diversified portfolio** makes sense and can create outsized returns. This is even more true if you can borrow the money at a low, fixed rate over a long time period ( i.e. like taking a 30 year second mortgage at 2.5% in the middle of the pandemic, then dumping the funds into SPY. ) If you want to use it to gamble on high risk, potentially high return bets........that is not a good idea. Wall St. is the house and the house always wins. Hell, they lost their asses in 2008 and the STILL won when the rest of us bailed them out. Don't borrow a stake to play poker against professionals.

True_Veterinarian443

I started doing the Same. Increased TIPS and 7-10 years Treasury Bonds.

PashasMom

I really would not have 30% cash. If I were going to limit myself to 70% equity, I would probably put 25% in a 3 year TIPS ladder, or possibly make a ladder using closed end bond funds from iShares. [https://www.tipsladder.com/](https://www.tipsladder.com/) [https://www.blackrock.com/us/financial-professionals/tools/ibonds](https://www.blackrock.com/us/financial-professionals/tools/ibonds) For diversifying equity away from tech, I would look at some sector ETFs like financial services (IYF), energy (VDE), infrastructure (IFRA), or industrials (FIDU).

weasler7

I think that’s reasonable. Keeping money in cash equivalents is akin to reducing your risk. TIPS would be a hedge against inflation. The yield on a short term government bond ETF is probably higher though.

Timbo1994

What about buying TIPS which locks in positive real rates?

Extension-Temporary4

I’m a dumbass, but sometimes I get lucky ;). My last “big” play was Office Depot which was acquired this week (look at my post history and you will see my thesis and math, and you’ll see it pretty much played out as I imagined — dumb luck).  I stick to some very core principles that I never stray from — even when I want to at times. Some of those core principles include never chase short term gains, never bet against America, never panic sell, never bet against Buffett, patience is key (when buying and selling) … the shit Buffett preaches basically. So at a very high level, buying a major index fund is never a bad idea — VOO, QQQ, SPY…  drilling a little deeper, I scour for undervalued companies. I analyze them thoroughly (which is now made easier thanks to AI), I deep dive into their management teams (especially comp packages and history), and I try to buy companies that I know have staying power. For example, data centers are hot right now but as the tech and code behind it all advances and becomes more efficient, the data will compress. So I’m not going to chase data centers. But I love power companies because we will always need energy. Even if Ai doesn’t pan out. Even if we go to war with China tomorrow, people still need power. Power companies have natural monopolies and tremendous pricing power. That’s just one example.  Getting specific, I have yet to find my next play but I like Berkshire (I’m waiting for Buffett to fully step away to increase my position. I think the price will dip and create a great buying opportunity). I think PayPal is interesting — it’s big in Europe and they are making major changes here in the states. They also just onboarded a brilliant new marketing guy, the brains behind uber… I’m eyeing a few investments but Markets are frothy now, so I’m patiently waiting. I don’t sit in cash, instead I buy govt bonds, money markets, and treasury inflation protected securities (TIPS). I can foresee several black swans causing a pullback in the next 12 months — when people start to panic, that’s when I’ll start to really deploy capital. If you made it this far, that last part is key and kinda the secret sauce. It’s how I’ve really built my wealth — patience. Once I find a company I love, or a fund I love, I run a valuation. I figure out the price I’m willing to pay for it. I set a limit price buy order and I wait. I wait. And I wait. Sometimes, it never hits my price and I never buy it. But more often than not, a few times a year, markets retract, or something happens and my order is filled and I end up owning something I love, at a fair price. I bought Google when “bard”went “woke”. I bought Facebook when people said it was done for because of TikTok and VR … I find great companies, w great leadership and I wait. 

The-Goat-Trader

It really depends what you mean by "a bit". TIPS ETFs are the most direct way to hedge inflation, but they’re still bonds—so they can have drawdowns when rates rise (2022 showed that clearly). If you want something less rate-sensitive, AAA CLO ETFs like JAAA or PAAA give you floating-rate exposure (income rises with short-term rates) and generally behave more like “enhanced cash”, though they carry some credit risk. For true short-term parking, ultra-short Treasury or money-market ETFs are safer, but they won’t keep up with inflation if it really spikes.

disloyal_royal

The actual TIPS bonds

Historical_Low4458

I-Bonds and TIPS are inflation hedges and what it sounds like you are looking for. You said short-term, but you don't really define it. Are you looking for something for just a few months or are you looking to hold for at least a year?

void-crus

So what do you want to own when fiat is being devalued? Bonds? That's a guaranteed loss. TIPS? No one trusts CPI anymore. Metals? Maybe. Businesses and real estate? Absolutely.

WileyCoyote7

I have also been mitigating via international equities and am seeing the same outpacing. My returns for gold mining in addition to physical gold (haven’t looked into silver yet) have likewise been a comfort. If stagflagtion like the 1970’s is indeed where we’re headed, as I believe we are, wouldn’t backing off of longer-term bonds in favor of TIPS also be the wiser choice? Also, I think REITs, which didn’t do as well in the 70’s due to higher leverages for most of them, could be potentially attractive now for those that are in residential, healthcare, or storage where adjustable rates can be utilized?

15pH

>I think 70-80% equities is a good balance for the long-term I am not your advisor and this is not financial advice. Friend, in your own words, you already won the game. Take your game pieces off the board. Decide what you need to retire and stick to that plan. Chasing "bonus wealth" almost always results in either leaving a larger inheritance or suffering a loss that derails your retirement. Usually when retirees win that extra bonus by holding extra winning equties, they don't change their lifestyle anyway, so the risk was pointless. Most investors today don't truely appreciate the risk in equities. Global economic fragility was exposed by Covid. USA admin is doing new disruptive things. AI can change economies in ways we don't predict. Plagues and disasters and wars happen. The last 15 years has everyone trained that markets go up and dips recover quickly, but history is full of bears that maul you for a decade. Large firms are generally guiding away from overvalued equities towards higher bond holdings, and that's for general purpose, not even for retirement. 70% equities says "I am chasing growth" not "I win!". If you are truely ready to retire, you want to be holding TIPS and high quality bonds that will pay you a very predictable and safe income for life, no matter what happens. Don't take unnecessary risks.

D74248

> What are your plans? I have taken a value tilt and reduced my overall equity allocation by 10%, shifting that into TIPS (which I will hold to maturity). Nothing drastic. When reviewing my portfolio I always ask myself how this planning will work if tomorrow the market starts a 40%. correction that then takes 8 years to recover, and I do what I need too to make the answer be “OK”. Of course this is easy if you are 40 and looking at retirement investments. Much harder if you are 65.

debtmagnet

> I'm just wondering if it's better to get out of the market altogether for the next few years You're just using different language to suggest what retirement planners already endorse: reducing the risk profile of your portfolio to protect against sequence-of-returns risk. This is typically done by allocating a larger portion of your assets to bonds and cash-equivalents, forgoing the opportunity for higher returns of equities. You should also be aware that long-dated fixed-return assets (particularly cash, if that's what you've implied by "getting out of the market") are generally vulnerable to the impact of inflation. Without making this thread political, the current administration is advocating for a monetary policy that would be tolerant of higher inflation. In my opinion, the most conservative/low risk asset class is currently short dated inflation-protected treasuries. There are a few ETFs such as TIPS that make moving to a defensive position relatively painless.

Jerikolol

TIPS 10 year is back to where it was at the start of september, so so is gold. basically back to 3600s instead of shooting through to 1700s. When bonds stop rallying after a rate cut (lmao), we'll go back to drifting upwards since nothing really changed: fed under attack, wars everywhere, dedollarisation continues etc, inflation at 2% ... in 2028 (SURE LOL). So yeah, as long as gld isnt doing -2% every day, were just gonna chill for a bit. \*pray\*. Like USD is UP ffs to before FOMC after 3 rate cuts guaranteed this year. so yeah, lmao

TheRealJim57

If she's on SSI, then she has asset limits that apply. If SSA finds that she's been trying to hide assets by not depositing those checks, then she's going to be in trouble. If those checks are more than 90 days old, then they may no longer even be valid, and she's going to have to see what she needs to do in order to recover the money at all. Her best course of action is to come clean about the checks, deposit them, and move forward. She could see if she's eligible for a third-party Special Needs Trust if the check is from an inheritance, but you'll need to consult an expert on that, not me. As for where to put the money to keep it liquid but still earning interest, she could put it in a HYSA, TBills, or TIPS, or even buy shares of SGOV if you don't want to deal with the Treasury products directly.

shabuboy

HYSA T--Bills TIPS

Puzzleheaded-Score58

TIPS

medicsansgarantee

consider putting some money in an inflation-linked bond (TIPS) that will mature in about 15 years like when your child will be going to college. and dont put all your eggs in one basket. You will need saving account, bonds ( TIPS ) and S&P to make it a bit resilient. with S&P you have to go in tranches, not all in one go, but periodically.

notjakers

Used to be nearly 100% SP500. Now I’ve diversified out of it. Foreign equities and large cap value are the bulk, plus a little bit of midcap and some TIPS and foreign bonds. If the market tanks I’m hedged a bit. If the big tech companies continue to dominate, I’ll do well just not as well. The big companies buying Nvidia chips are going to run into a revenue problem eventually. A lot of AI is being commodified, which will drive revenue done and really hit the gross margins. Even if we use AI 100x as much in 10 years, it’s not clear that revenue will rise even 10x.

Status-Selection8848

Solid plan, especially with the diversification. Since you’re so close to retirement, maybe add some TIPS or bonds for stability. Protecting capital matters more than chasing growth at that stage

kronco

Some links with some of the articles around TIPs from about two years ago when I built a TIPS ladder: [https://www.morningstar.com/bonds/high-tips-yields-are-retirees-best-friend](https://www.morningstar.com/bonds/high-tips-yields-are-retirees-best-friend) [https://www.morningstar.com/bonds/its-time-consider-tips](https://www.morningstar.com/bonds/its-time-consider-tips) [https://tipswatch.com/2023/02/05/tips-on-the-secondary-market-things-to-consider](https://tipswatch.com/2023/02/05/tips-on-the-secondary-market-things-to-consider) [https://www.wsj.com/market-data/bonds/tips](https://www.wsj.com/market-data/bonds/tips) [https://www.bogleheads.org/forum/viewtopic.php?t=394380](https://www.bogleheads.org/forum/viewtopic.php?t=394380) [https://www.bogleheads.org/forum/viewtopic.php?t=412123](https://www.bogleheads.org/forum/viewtopic.php?t=412123) [https://www.tipsladder.com](https://www.tipsladder.com) [https://www.bogleheads.org/wiki/Treasury\_Inflation\_Protected\_Security](https://www.bogleheads.org/wiki/Treasury_Inflation_Protected_Security)

JackfruitCrazy51

A few reasons to use a TIPS ladder to bridge the gap to SS. Keep in mind that you would want to do this inside a 401k/traditional IRA for tax purposes. Sequence of returns risk refers to the danger of retiring right before a market downturn. If you have to sell off your investments to cover living expenses while the market is down, you lock in losses and may jeopardize the long-term health of your portfolio. A TIPS ladder provides a "safe" source of cash for the first few years of retirement, allowing your riskier assets (like stocks) to ride out a market downturn without being touched. A CD ladder will achieve a similar effect. With the CD ladder, you're gaining a higher rate but are introducing inflation risk. This free site is a good resource. [https://www.tipsladder.com/](https://www.tipsladder.com/)

JackfruitCrazy51

What about a TIPS ladder for the 6 years before you get social security? Keep the rest invested.

SirMontego

>No it doesn't, go read the bill Ok, I will go read the bill. Thanks for the tip! [Pub. L. 119-21, section 70201, on page 101](https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf#page=101), says: >‘‘(3) CASH TIPS.—For purposes of paragraph (1), the term ‘cash tips’ includes tips received from customers that are paid in cash or **charged** and, in the case of an employee, tips received under any tip-sharing arrangement. WOW, look at that! It says "charged," exactly what I said. Next, we can also "go read" the law to see where that language is codified. [26 USC Section 224(d)(3)](https://uscode.house.gov/view.xhtml?req=(title:26%20section:224%20edition:prelim)) says: >(3) Cash tips >For purposes of paragraph (1), the term "cash tips" includes tips received from customers that are paid in cash or **charged** and, in the case of an employee, tips received under any tip-sharing arrangement. That language is there too! This is such an amazing experience! The funny thing is that I read the bill before writing that comment. [Proof.](https://www.reddit.com/r/OutsideLands/comments/1mlcspv/comment/n8iacb4/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) Meanwhile, you clearly have not read the bill, are spewing out completely wrong information, and obviously can't even follow your own advice. You should delete your comment.

user-namepending

I-Bonds and TIPS are not designed to "make money". They're a hedge against periods of high inflation. Just one more light shield of safety we get against inflation running rampant. Why would this inflation data be fabricated? Just because you don't like the number? Why was everyone okay with last months numbers for PPI because they weren't perfect?

BananaBagholder

So are I-bonds and TIPS worthless now? If the regime just fabricates inflation data, sounds like we don't have inflation protection.

skilliard7

I was mostly in 30 year TIPS but I sold them today to get money market. The market is pricing in a September rate cut as an absolute certainty, even pricing in a 12% chance of a 50 basis point cut, but I think September 12 inflation numbers will be bad. It's not even just tariffs creating inflation concern, the crackdown on immigrant labor is going to push costs up.

A1L1V2

I made that bet right after the king was voted in back in November. Sitting on gold miners, TIPS, cutting edge tech, and blue chip dividends. Up close to 40% since mid November.

wrestlingchampo

If you are concerned, WMT isnt going to the refuge for you my guy. GLD, TIPS and mining companies have been my refuge since about 2 weeks ago. The inflation is coming, with or without Powell's rate cuts.

zxc123zxc123

I've been telling folks for years now that gold truly reflects risk aversion, is county specific hedge, and offers anti-volatility/inflation benefits. But folks years ago were going on about how it was a stupid useless rock and TIPS were paying 7-9%. WSB frontpage often top ticks meme craze or stock momentum because WSB regards pile into things before they crash. It was strange to see folks keep talking about TIPS in the spring/summer/fall of 2022 when in my mind it was likely the speaks of inflation once the Fed started to hike rates. Anyways we see gold going ballistic this year because individual investor but also central bank demand for it. It's just that folks like OP is late to the game. Sure short term cash pays well, but if Trump puts in his own goons and they cut rates to 0%? Sure TIPS protect against inflation, but what if the folks Trump puts into place say 150% "inflation is -1.5% and the economy is great THANK YOU FOR YOUR ATTENTION TO THIS MATTER"? Oh long bonds might protect you from rate cuts with 20/30yr near 5%, but what if Trump's crazy policies undermines faith in the US and spike yields more? Then you're stuck with those bonds for 20-30 years as +10%/yr inflation destroys your dollar value. That assumes Trump doesn't just default for the lulz (that's what a Russian asset would do) while Trump says 150% inflation is 1.5%. Like WTF will do you? Sue Trump only to get deported to El Salvador? LOL. But with gold you worry about none of those. Gold is priced in dollars but price is determined by institutional & central bank demand while supply is capped by the labor/energy/capital costs of finding/mining/refining/transporting gold. In a world where the US, US leadership, US dollar, US debt, and Pax Americana are increasingly called into question (generally the best option btw. Even now. Japanese bonds? Chinese Yuan? European leadership? Russian debt? Pax Austro-Canadia? Nah.), then gold goes back to being the gold standard.

StatisticalMan

I own gold as a percentage of my portfolio because it has low correlation to both stock and bonds. Uncorrelated assets are a good thing. As to when or why or how gold goes up honestly it doesn't matter. The fed cutting rates is also linked to fear. Fear of true fed independence. Without an independent fed the risk of higher future inflation is higher. Without independent agencies to accurately report things like employment and inflation then buying TIPS is buying blindly. Gold however will react to falling dollar buying power. It is the inflation metric that can't (easily) be faked. If the govt officially says inflation is low for the next three years but gold keeps going up 5% to 10% a year consistently during time same time period the market is indicating that inflation is in fact not low.

D74248

> Bonds are a poor investment during inflation During the stagflation of the 1970s rolling short term Treasuries proved to be one of the best strategies — with the benefit of hindsight, of course. And today we also have TIPS, which are designed to outperform inflation when held to maturity (otherwise they have a lot of interest rate risk).

Business-Evening-816

A variation on your Bond notes are TIPS, which has the low-return that you mention for nominal bonds, but you will have protection against inflation. Depending on where people are compared to their retirement horizon, ladders and holding to maturity protects against the value falling in bond funds.

D74248

[Sequence of Returns Risk](https://www.schwab.com/learn/story/timing-matters-understanding-sequence-returns-risk) can really kill a retirement portfolio. I am 5 years into retirement and am using a [bond tent](https://smartasset.com/investing/bond-tent) in an effort to mitigate it. Laddered Treasuries/TIPS and defined maturity corporate bond ETFs. I do not hold open ended bond funds that maintain fixed duration. Currently the portfolio is 40/60, and the plan has it ramping back up to 60/40 by 2032. Younger people look at the spaghetti plots of the various portfolio analyzers and daydream about the lines that launch to the stratosphere. As we near retirement most of us start to think more about avoiding those lines that go off the bottom of the chart (the failures). Wade Pfau, who is well qualified, has written several books about retirement. Just Amazon the name. Also [Michael H. McClung's opus](https://livingoffyourmoney.com/), though for full disclosure I opted for a simpler approach than his ideal model -- but still well worth the read IMO.

Chronotheos

They’re diversified beyond the S&P. They usually carry small cap and international early on and the fade into some bonds and TIPS later. If you held the S&P from 1999 to 2012, you’d have felt like a netard then too.

kewku

A: VIX < 15 → market is very calm. Historically, the lowest was 8.6 in 2006 before the 2008 crisis. The market’s calmness today might make people think a correction is unlikely but one shock (like in April 2025) can spike volatility immediately. B: Investors are betting on currency debasement, meaning the value of the US dollar could fall over time due to money printing (QE), low interest rates, or hidden inflation (“silent tax”). This erodes cash holders’ purchasing power without official tax increases. Central banks are effectively trying to inflate away debt. Which means: 1. If you hold a lot of USD cash, its real value could decrease over time because of inflation and central bank policies. 2. Some investors react by putting money in things that protect against inflation: - Gold or other precious metals - Real assets (property, commodities) - Stocks - Inflation-protected bonds (like TIPS in the US)

Slowmaha

Agreed. But everything is so damn correlated. So the US goes, so everything goes. I’ll probably look at TIPS or high yield corporates

AICHEngineer

Look up "amortized withdrawal rate". 4% would work when you retire in 1966 and use a fixed inflation adjusted rate for 30 yrs. Thats the *worst case scenario* in our last century of US data. Why? Inflation in the 70s. Yes, you can spend a *lot* more during low inflation eras, even without huge market returns. Think about it. 4%? Thats so low. 1/25th of your portfolio in the first year. Assume your investments only high real returns of zero with low vol (match inflation like with TIPS) and you last 25 yrs. 4% assumes inflation is so terrible plus you only get a low real return from stocks. Most most most cases are not *that* bad.

BigEdsHairMayo

Are any of you concerned about TIPS given the chaotic situation with BLS leadership?

BigEdsHairMayo

Getting into TIPS soon for the first time. Tariffs + weaker dollar + rate cuts + deportations = inflation.

kronco

Vanguard target date funds reduce stock exposure over time until 7 years after the target date when they move to the Target Retirement Income Fund (VTINX) allocation for, well, forever. That is 30% stocks and 70% bond allocation at that point. Source: [https://investor.vanguard.com/investment-products/mutual-funds/profile/vtwnx#overview](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtwnx#overview) : *The funds continue to adjust for approximately seven years after that date until their allocations match that of the Target Retirement Income Fund.* And that final fund: [https://investor.vanguard.com/investment-products/mutual-funds/profile/vtinx](https://investor.vanguard.com/investment-products/mutual-funds/profile/vtinx) I assume other firms do something similar. You can select funds different then your retirement year. if you want more stock exposure with the risk/reward that brings go with one after you plan to retire. Want less risk, go with one dated before you plan to retire. it's a common approach. Vanguard funds are good. Their fee for the fund is just that in that it includes all the funds it holds. That is you don't pay the fund fee on top of the fees of the underlying funds. 0.08% in total fees is hard to beat here. Vanguard uses short duration TIPS in their target date funds to manage inflation. Deep dive it here as to why they use short duration: [https://www.bogleheads.org/forum/viewtopic.php?t=443866](https://www.bogleheads.org/forum/viewtopic.php?t=443866)

jarMburger

Fed wasn't independent during the Nixon era. Nixon famously pressured his Fed chairman Arthur Burns to lower rate and enforce a looser monetary policies. So just go back to Nixon administration and see what happened to the market. Keep in mind that couple of major difference between now and then is that there's more investment choices now (TIPS didn't exist for another 20 years) but also lot more Americans own stocks/bonds as well.

Thin_Cat8817

I don't see the need for the bond allocation at your age tbh. If you have some money that you may reasonably need in a short/medium term, TIPS would be fine. But for an account that you're holding longterm it's unnecessary. I would keep any emergency or cash funds in a money market fund and for longterm account just allocate that 15% in bonds into your stocks. I would personally allocate to something like AVUV for some small cap value, but that's just my opinion. You could also do a bit more international if you want, 25% is fairly low. Maybe something like 10% in AVUV (US Small Cap Value) and 5% AVDV (International Small Cap)

VeryStableGenius

> Does anyone have any advice on what to do next? My retirement goal is 2035. Speaking for myself, here are my choices, that I'm gradually working toward: BRK-B - it has consistently beat the market, and keeps 35% in cash (T-bonds) on hand for opportunistic acquisitions. Don't time the market. Let someone smarter and more experienced time the market for you. SCHD - boring dividends, paying almost 4%, but total return of 8.5% *over inflation* for the past decade. P/E of just 18 or so, so the valuation is reasonable. Less likely to get pummeled in a bear market. VYMI - Maybe. International dividends. VTV - and other value funds, P/E 20 or lower, again priced reasonably by historical standards. TIPS (inflation adjusted bonds) - paying 2.6% over inflation. But only in a tax deferred retirement account. This is to hold cash and bet on a future interest rate fall (like another bout of Quantitative Easing). If QE happens, they'll shot up in value. I'm staying away from: hot stocks and index funds, because they are heavy with exactly the get-rich-quick, get-poor-quicker stocks like the ones that OP is cashing in. Alternatively, there are equal-weight index-compisition funds out there that contain homeopathic amounts of TSLA. If the $600K gain is not in a retirement account, it has to be carefully cashed out to avoid tax consequences, checking out [IRS capital gains brackets](https://www.irs.gov/taxtopics/tc409). It will be hard to bail out without paying $90K tax. You could even write calls against your gainer stocks to squeeze out more money and insulate against *some* losses if you pursue an extended sale schedule. Eg, a March 26 in the money call goes for 24, about 13% of NVDA's price. But you have to know what you're doing, and assume the risk of a sharp fall if you dilly-dally in diversifying.