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TIPS versus Money Market
After having been a lifelong investor in regular Treasuries, I am exploring TIPS (because I believe that interest rates will rise, given the inflationary policies of the administration and Congress). It seems to me that the main motivation for TIPS is to protect one from rising inflation. What is the difference between that and simply purchasing short-term Treasuries, or even easier, a money market fund? Those rates go up in accord with the Prime (and presumably inflation, assuming we have a responsible Fed). Why tie up my money in 5- to 10-year TIPs instead of a money market fund, since both adjust to inflation on a short-term basis?
u/dgeist58 — 2 days ago