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Tax Planning for the Use of TIPS at Retirement — footnotes
1 An annual adjustment is made to the Social Security payment based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
3 “Covet Thy Neighbor’s . . . Pension? Public vs. Private,” Fedgazette, May 2006
4 For a discussion of dividends as retirement income, see Craig and Toolson, “Formulate a Tax-Efficient Dividend Strategy for Retirement,” Practical Tax Strategies (March 2005): 168–75.
5 General information about TIPS, including how to acquire them directly from the U.S. Treasury, can be found at TreasuryDirect.
6 Wall Street Journal, Markets Data Center, Treasury Quotes, http://online.wsj.com/page/mdc/2_0500-tsyquote-10.html and http://online.wsj.com/mdc/public/page/2_3020-tips.html?mod=topnav_2_3024.
7 TIPS funds are available with annual expense ratios as low as .2%.
8 For empirical evidence of the diversification benefits of TIPS, see Kothari and Shanken, “Asset Allocation with Inflation-Protected Bonds,” Financial Analysts Journal (January/February 2004): 54–70; and Roll, “Empirical TIPS,” Financial Analysts Journal (2004): 31–53.
9 Remarks by Jeffrey M. Lacker, President, Federal Reserve Bank of Richmond, at New York University (5/22/07).
10 For information on the mechanics of I bonds, see 31 CFR §359 and www.savingsbonds.gov.
11 Rev. Rul. 58-210, 1958-1 CB 523. For a detailed discussion of capital losses, see Craig and Toolson, “Planning for the Effective Use of Capital Losses,” Journal of Financial Service Professionals (September 2002): 51–63.
