TIP$TER projects the safe, sustainable retirement budget that a tax-deferred portfolio fully invested in Treasury Invested Protected Securities (TIPS) would support.  Then, it projects and compares the volatile range of retirement budgets that a diversified portfolio would support.
TIP$TER's "Risk-Free" Baseline Portfolio

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Fast, Intuitive and Powerful TIPS-based Financial Planner

   TIP$TER starts with the assumption that you should project the retirement security that a very safe, conservative investing strategy would sustain before contemplating the risks and rewards of more aggressive approaches.

   Accordingly, TIP$TER first projects the inflation-adjusted retirement budget that amortization of a portfolio fully invested in TIPS and other anticipated retirement income sources would likely support.  (To maintain simplicity and speed, TIP$TER assumes that the investor can grow and rebalance your portfolio without immediately realizing taxes for interest, dividends, or capital gains.  For more information, click here.) 

Note: TIPS are not perfectly risk-free assets. 
But they make a good enough approximation that academics often treat TIPS as a "risk-free" asset.
For more information, click here.

   TIP$TER's interface for yielding that initial projection is simple, intuitive, flexible, powerful, and fast.  To make its projections, TIP$TER asks for only a few basic inputs. What are your current retirement savings and what additional retirement contributions do you plan? When do you plan to retire, and for how long do you want to make the savings last? When do you plan to apply for social security benefits, and how much do you expect to get?  An "additional inputs" option accommodates your entry of additional, more specific anticipated cash flow inputs and outputs, including pension income, anticipated house sale or reverse mortgage proceeds, anticipated inheritance income, college expenses, and the like.

TIP$TER inputs

    With every new or changed input, TIP$TER immediately projects the sustainable retirement budget your anticipated savings would support if they were fully invested in TIPS, based on your specified real rate of return on TIPS.  TIP$TER also – with every new or changed input – immediately graphs your projected retirement portfolio size and retirement spending budget size per year over the desired portfolio duration.

TIP$TER's fast baseline (i.e., 100%-TIPS portfolio) projections

     Most retirement planners and calculators require you to fully specify your retirement plans and circumstances, then click on some "calculate" button, before presenting any results.   The long separation between inputs and outputs makes it difficult to appreciate the relationship between the inputs and the outputs, and indeed probably discourages you from testing different inputs.  But to develop a sound retirement plan, you need to appreciate the relationship between each of the inputs and the projected outputs.  The long separation between inputs and outputs also makes it difficult to intuitively assess the trustworthiness of the retirement planner's results.  This can be dangerous, because many retirement calculators and planners have significant bugs.  To put it simply, many retirement calculators put their promised insights out of easy reach.

   TIP$TER's immediately responsive graphical updates, by contrast, provide you with an intuitive grasp of how simple changes – in planned retirement year, savings, portfolio duration, and the like – affect the sustainable retirement budget that your savings would sustain.  By starting with just a few simple inputs, and then gradually changing them – all the while looking at how each new and changed input impacts the sustainable retirement budget and year-by-year portfolio size charts – you can gain confidence in the reliability of TIP$TER's outputs.

    Most importantly, TIP$TER's intuitive interface and rapid graphical responsiveness quickly guide you toward a responsible conservative retirement plan.  You are then prepared to consider the potential risks and rewards of riskier approaches.

Simulated outcomes of a mixed portfolio are projected against this baseline

TIP$TER chart comparing 95, 50, and 5 percentile outcomes (in retirement expenditures/year) of diversified portfolio with 100%-TIPS portfolio

   TIP$TER's signature distinguishing feature is its depiction of the simulated performance, over a lifetime of retirement saving and spending, of a mixed (i.e., part equity, part bond) portfolio in comparison to the projected performance of an all-TIPS portfolio.  The graph above illustrates – in yellow-highlighted black dots – a projected sustainable retirement budget of about $50K/year if all of an investor's savings were wholly invested in TIPS.  The graph also shows the retirement budgets – in red, blue, and green dots – sustained by the 5, 50 and 95 percentile ranked simulation trials (respectively) of the mixed portfolio.

   TIP$TER models each mixed portfolio as being divided and annually rebalanced, in accordance with your specified asset allocation, between TIPS and a Total Stock Market portfolio.

   TIP$TER provides several practical insights for evaluating investment choices. TIP$TER reveals the percentage of, and degree by which, simulated trials of the mixed portfolio outperformed the projected outcome of a 100%-TIPS portfolio. TIP$TER also reveals the percentage of, and degree by which, simulated trials underperformed that risk-free baseline.

   With TIP$TER, you can also test the relative safety of flexible retirement budget plans that are dependent on the portfolio's simulated performance.  In every case, the distribution of retirement budgets sustained by the portfolio's simulated trials is compared to the sustainable retirement budget that a 100%-TIPS portfolio would be projected to support.

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