July 22, 2025

Episode 188: Are TIPS the Retirement Safety Net You’ve Been Missing?

43 minutes

In this episode of Retire with Style, Alex Murguia and Wade Pfau explore Treasury Inflation-Protected Securities (TIPS) and their role in retirement planning. They cover the history of TIPS, their tax implications, and how they help protect against inflation. The conversation also addresses the drawbacks of TIPS, current market conditions, and the importance of clear communication- especially for couples where one partner is less engaged in financial matters.

Takeaways

TIPS were introduced in 1997 to protect against inflation.

TIPS provide a real rate of return that adjusts with inflation.

Tax implications of TIPS make them less efficient than other investments.

It's important to consider the inflation protection TIPS offer in retirement planning.

Market timing is not a sound strategy for investing in TIPS.

Communicating financial plans should focus on meaning rather than just numbers.

Delaying Social Security can provide inflation-adjusted income.

Laddering SPIAs can be an effective strategy for income planning.

Understanding your spouse's values can enhance financial discussions.

Having a contingency plan for financial management is crucial.

Chapters

00:00 Introduction to TIPS and Their Importance

02:57 Understanding TIPS: Historical Context and Current Trends

06:00 Tax Implications and Asset Location for TIPS

09:01 Inflation Protection Strategies in Retirement

12:01 Evaluating the Downsides of TIPS

14:58 Conclusion and Final Thoughts on TIPS

18:21 Understanding TIPS and Their Role in Portfolios

27:15 Communicating Financial Plans to Less Interested Spouses

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

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By Wade Pfau & Alex Murguia

3.9

153153 ratings