Financial Planning News
Wed, 20 Mar 2013
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The outlook for bonds is just as cloudy as ever, but Morningstar's Miriam Sjoblom and Marta Norton offer helpful tips for setting the right expectations and creating a game plan in today's challenging bond market.
Schwab U.S. TIPS ETF is one of the cheapest options available for investors looking to take out some portfolio insurance.
Morningstar's Eric Jacobson offers a formula to gauge whether TIPS are cheap or expensive compared with other assets but also warns of potential risks should long-term yields rise.
Core TIPS funds tend to hold longer-term bonds--bringing more interest-rate sensitivity and volatility--but newer, shorter-term TIPS funds have their own trade-offs.
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