The 2025 fund, aimed at someone retiring now, holds only 7% in the short-term TIPS fund, average maturity 2.4 years, hardly appropriate for someone with 20-40 years of real living expenses to pay for.Just to illustrate the Vanguard 2030 fund is about 40% total bond funds, the 2025 fund is about 50% bonds including (very roughly) 5% TIPS fund, the 2020 fund is roughly 60% bonds including (roughly) 10% TIPS, and the TR Income Fund is 70% bonds including (roughly) 15% TIPS.
DFA's TD funds have appropriately long TIPS maturities, not surprising since they were designed by Merton, and require either paying for an advisor or, presumably, availability in a DC plan that carries them.
Statistics: Posted by Bill Bernstein — Sun Jan 26, 2025 7:10 pm