ddierck_IHB
New member
Hi everyone. I trust the economic minds on this forum, so I figured I would run this question by you guys. I am a newbie when it comes to these sorts of things, so please forgive.
My wife and I are saving up for a down payment for a house. At this point, we are fairly cash heavy, but we are not sure that we want to jump in to the market right now. One of my major concerns regarding being so cash heavy is the threat of inflation, which would obviously reduce our purchasing power. We originally considered buying up TIPS (Treasury Inflation Protected Secruities) but we found that they are generally sold in three to five year increments. This is not a good fit for us, because while we do want to protect against inflation, we need to make sure that we can be somewhat liquid so that we can take our cash out quickly if we find a place that we like.
This situation brought us to a TIPS ETF that I discovered online (TIP). It was indicated that the ETF consists of 80% TIPS and 20% other investments that are supposed to protect against inflation. Does this seem like it would be a good fit for our situation? I don't really care about making large amounts of money at all, I just want to protect my purchasing power and remain somewhat liquid. Would this ETF accomplish both goals?
My wife and I are saving up for a down payment for a house. At this point, we are fairly cash heavy, but we are not sure that we want to jump in to the market right now. One of my major concerns regarding being so cash heavy is the threat of inflation, which would obviously reduce our purchasing power. We originally considered buying up TIPS (Treasury Inflation Protected Secruities) but we found that they are generally sold in three to five year increments. This is not a good fit for us, because while we do want to protect against inflation, we need to make sure that we can be somewhat liquid so that we can take our cash out quickly if we find a place that we like.
This situation brought us to a TIPS ETF that I discovered online (TIP). It was indicated that the ETF consists of 80% TIPS and 20% other investments that are supposed to protect against inflation. Does this seem like it would be a good fit for our situation? I don't really care about making large amounts of money at all, I just want to protect my purchasing power and remain somewhat liquid. Would this ETF accomplish both goals?
