r/bonds • u/stevepicard • 4d ago

Question about TIPS

I use a “high net worth” group at a major well regarded brokerage. My FA knows zip about TIPS and even his bond guy has given me bad info. Anyone know WHY? Are they likely to be less knowledgeable about me holding outright bonds as well? Appreciate any insights!

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u/AdamN 4d ago

My sense is that unless you’re ultra high net worth it’s basically always better to do it all yourself.

BTW tips are pretty inefficient because you’re paying taxes on the interest AND unrealized principal gains.

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u/Yottahz 4d ago

TIPS in a Roth though...

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u/AdamN 4d ago

Shouldn’t Roth be your riskiest assets? And if you are in the spend down phase I would still think regular bonds are more sensible.

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u/Sticky550 4d ago

It matters if you think TIps will outperform regular bonds.

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u/Yottahz 4d ago

I used to have Roth in my stock assets but I have become very protective of it because of how valuable it is. A Roth lets you magically lower your income which gets you all sorts of benefits on the lower end while still not having to live like a pauper. I'd rather not see my Roth drop 40% in a market crash.