Question/Comment: If someone said to you, I have $100,000 of hard earned money saved, where would you invest it?
Paul Solman: In U.S. government TIPS, Treasury Inflation-Protected Securities, I suppose. They pay an interest rate equal to the Consumer Price Index, plus a small premium (a percent or two).
The reason I answer this way is because a major chunk of our family pensions are invested in them, and have been for years. And they’re a favorite of my finance professor guru, Zvi Bodie featured in a piece ours on the financial crisis.