Investment income is taxable. TIPS were not created as a tax-exempt bond. Why do you think they should be?Yes but I suspect that your 2% of Americans with more than $4million are well represented here on Bogleheads. In other words, I suspect that the number of Bogleheads with large taxable accounts is great enough to merit my concern that TIPS don't work well for a lot of us. It’s more than an incidental amount.But in big sustained inflation, like USA 1966-1981, that doesn't work well for large taxable accounts due to "taxflation".What a pity there isn't such a thing as, what would you call it, an "inflation-protected security," ...OK, then it seems we agree that the comment from nisiprius may be of practical value for the other 98% of Americans (who I presume are some subset of the audience of the podcast).I would define "large taxable account" as $5Million or above. Maybe $4.
Statistics: Posted by Northern Flicker — Sun Dec 24, 2023 12:38 am — Replies 107 — Views 6110