TIPS

[Venkman]

I am trying to figure out where best to put my TIPS.  Per my investment plan (10% of portfolio).  Other bonds in portfolio are intermediate munis in taxable and I bonds (small percentage).  I am in highest tax bracket.

Only bond options in 401K plan:

PIMCO Income Fund
PIMCO Low Duration
PIMCO Total Return

Vanguard Total Bond Market Index Adm

Vanguard Core Bond Fund Admiral

I can buy in my Roth at vanguard but seems like a waste of opportunity (I do not have much Roth space outside of 401K).

Otherwise I can buy in HSA at HSA Bank as an ETF or in my taxable account at vanguard.

My initial thought was to buy in HSA through ameritrade (which would take up most of my entire HSA money to reach 10%).  I am not planning on using HSA money for 15 to 20 years, until retirement.  Other option is to buy in taxable.

Any thoughts or other options?

Also is VTPSX the TIPS you would buy?

Thanks.

[DMFA]

Taxable doesn't seem horribly awful for TIPS, but still less-than-perfect (see WCI's Feb 2014 post [here] including comments); earning on inflation adjustments/distributions will cause their gain to be low, so you shouldn't lose much to tax like you would your high-gainers, but the inflation adjustments create a "phantom tax" on money you don't actually receive.

HSA seems like not a bad idea, like SCHP (Schwab's TIPS ETF).  That seems like not a bad fund to hold in an HSA given its strength in asset protection as opposed to gaining value, depending on how you might need to use the HSA.

[VagabondMD]

When I saw the title, my first thought was Transjugular Intrahepatic Portosystemic Shunts (TIPS), then gratuities, but now that I have come around to bonds, my TIPS allocation is about 20% my overall fixed income allocation in my retirement (tax-deferred) portfolio.