CD rates suck. What about TIPS?

[CatFan]

Inflation is here, and everything seems to be pointing toward acceleration. My CDs start maturing in August (goodbye 2.5% ). I’m thinking about putting a chunk in TIPS.

I have thoughts on it, but would like to hear other’s thoughts before posting them. My situation is that I’m retired with no debt, significant stock market investments, and the option of returning to work at moderate 6 figure income if I want/need to.

As an aside, I’d kind of consider real estate in a normal world, but it’s already on fire. WTH is inflation going to do to that market?

[NitroZ7]

I looked at TIPS last year and the problem is they are only going to pay a decent yield if inflation keeps climbing for awhile. I havent looked at them since. I think they have been bid up quite a bit since everyone is expecting inflation. I know Vanguard and others have a TIPs etf and mutual fund. I would do some reading on them as there have been several articles written about them lately. I cant find anything in fixed income at all either.

[Bassin08]

Any opinions on preferred stocks? They too have dropped in yield though. I just had a JPM called and to replace it will be in the 4% range. The other challenge is to find a accumulative one, as opposed to a non-accumulative one.

[NitroZ7]

Any opinions on preferred stocks? They too have dropped in yield though. I just had a JPM called and to replace it will be in the 4% range. The other challenge is to find a accumulative one, as opposed to a non-accumulative one.

I think I had the same preferred. It was called a week or 2 ago. I may look for another one but I may wait until the end of the year to see what yields do. I did buy some WPC about a month or so ago which was yielding about 5.5% but its not as safe as a preferred.

[Bassin08]

I think I had the same preferred. It was called a week or 2 ago. I may look for another one but I may wait until the end of the year to see what yields do. I did buy some WPC about a month or so ago which was yielding about 5.5% but its not as safe as a preferred.

I have several of these that are all callable. Most of them are in the high 5% to low 6% range. I did notice today that a few are under the $25 par range. There are some that I bought that were over the $25 par price. Hopefully they won’t get called.