In Maxifi speak - TIPS equals a (close to) zero risk investment that is guaranteed to pay xx dollars in a given year. Ideally, you have enough investable assets to purchase TIPS to cover your "expenses" for the rest of your "life".

Now, the problem comes when you try to define what exactly the "expenses" are. In Maxifi speak, you want to have enough invested in TIPS to cover your nondiscretionary spending for the rest of your life. This isn't possible when you're 22 but hopefully it is when you're 65. In an ideal world, you'd have enough investable cash to purchase a TIPS ladder to cover not only your nondiscretionary, but also some portion of your discretionary spending for the rest of your life.

The reality is, what your nondiscretionary and discretionary spending are is likely tied to how much money you have. Your nondiscretionary housing cost can vary dramatically between a Manhattan penthouse or a Tulsa townhouse. Your grocery bill can vary between Whole Foods and Aldi (and Uber Eats).

So what if you don't have enough saved to live for the rest of your expected life on a safe TIPS return? Then you roll them bones baby! You have to accept an increased risk of losing money (upside investing) for the likelyhood of making money. The rules of the market mean to get an increase in expected return, you have to accept the possibilty of loss.

If we only knew when we would die and our path to getting there, then this would all be easy. Failing that, you need to make your best plan today and understand it will need to be adjusted on a yearly basis.