[docker_up]

You're talking strictly US index funds. Have you taken a look at Japan? What if the characteristics of the US markets turn into something more like Japan? Your entire thesis would be wrong, and you could lose a lot of money.

[bilbo0s]

You're right about that, but Thrustvectoring is right too. The lowest risk investment that will make you the most over the long term, at least historically, has been index funds. Of course, environments change, and past performance is not a guarantee of future results. As you correctly imply.

I think most responsible advisors would not say, "Put everything here!" Or, "Put everything there!"

You need to diversify a bit, and that diversification should be informed by your own personal appetite for risk. If you have a low appetite for risk, TIPS are the way to go. Maybe some small percentage of your assets diversified across other asset classes.

Conversely, if you have a high appetite for risk, I believe a responsible advisor would still recommend some smaller percentage in TIPS, and then maybe the majority of your holdings diversified across other asset classes.

[fujiters]

This is just an argument for diversification. Hold the world at market cap and you'll only lose money if the whole world's markets crash and stay down for decades. And if that happens, I'm not sure bonds are going to keep you from hurting.