The Case for Locking In 3% Real Returns

With 30-year TIPS now yielding nearly 3% real, investors can lock in inflation-adjusted returns competitive with traditional portfolios without the risks that come from a large slug to equity risk.

Years ago when I taught first-year investment associates I would start the intro to bonds class off with a simple question, “What is the expected annualized return of a 4% yielding bond if you hold i…