I thought that I had saved a thread/comment that discussed this, but am unable to lay my hands on it now - apologies if asked & answered.
I recall reading that there is a direct mathematical relationship between inflation and bonds.
CPI-ALL grew from 1.4% in Jan 2021 to a peak of 9.1% in June 2022. What is the Boglehead recommendation for maintaining a bond allocation for those who are in retirement (and decumulating) when inflation roars?
Also, typically bonds have an inverse relationship to equities, but in the 2021-2022 time frame both asset classes plunged. So where would Bogleheads go for safe harbor in those circumstances? I'm not the brightest bulb, but in hindsight VTIP (Vanguard's short term inflation protected bond ETF) would seem to have offered a nice mix of safety and returns.
What lessons should retirees learn about asset protection from this time period?
I recall reading that there is a direct mathematical relationship between inflation and bonds.
CPI-ALL grew from 1.4% in Jan 2021 to a peak of 9.1% in June 2022. What is the Boglehead recommendation for maintaining a bond allocation for those who are in retirement (and decumulating) when inflation roars?
Also, typically bonds have an inverse relationship to equities, but in the 2021-2022 time frame both asset classes plunged. So where would Bogleheads go for safe harbor in those circumstances? I'm not the brightest bulb, but in hindsight VTIP (Vanguard's short term inflation protected bond ETF) would seem to have offered a nice mix of safety and returns.
What lessons should retirees learn about asset protection from this time period?
Statistics: Posted by id0ntkn0wjack — Tue Sep 17, 2024 4:10 pm — Replies 1 — Views 109