Q: Many financial advisers recommend a retiree include Treasury Inflation Protected Securities (TIPS) as part of the fixed-income portion of their portfolio to protect against rising inflation. Although TIPS are clearly different securities than those in the Thrift Savings Plan’s G Fund, it appears there are some similarities in both their composition and their returns over time. As TIPS aren’t available in the TSP (nor should they be, in my opinion), what are the pros and cons of using the G Fund as a substitute for a TIPS (IRA) fund in the fixed-income portion of a federal retiree’s portfolio?
A: Please see my May 3, 2010, Money Matters column, which is available at http://www.federaltimes.com or through the following link: http://blogs.federaltimes.com/federal-money/2010/05/03/tsp%e2%80%99s-g-fund-has-unique-benefits/.
