I don't know... I have the feeling that the inflation rate calculated in those formulas is much lower than the actual inflation rate experienced by the population, and it's kept artificially low because otherwise many inflation-adjusted entitlements paid by the government would grow out of proportion.
Maybe it's just because I live in California, but over the past 10 years I have observed inflation in my main expense categories (mostly rent and restaurants) go up a steady ~10% a year, which clearly doesn't match what the TIPS have been returning, so had I had all my nest egg in TIPS, my purchasing power would have shrunk by quite a bit.
Maybe it's just because I live in California, but over the past 10 years I have observed inflation in my main expense categories (mostly rent and restaurants) go up a steady ~10% a year, which clearly doesn't match what the TIPS have been returning, so had I had all my nest egg in TIPS, my purchasing power would have shrunk by quite a bit.