When I decided to make our Asset Allocation Update to Include More International Exposure  I spent a lot of time reevaluating our entire portfolio.
Currently our non stock holdings are split between cash and the total bond market. The cash is actually in CD Ladders , but I’ve found the ladders renewing at such low rates, that I’m tempted to rethink that strategy.
I first considered the Ally Bank  5 year CD strategy with low early withdrawal penalties, before researching TIPS.
Treasury Inflation Protected Securities
A lot of my research and reading on treasury inflation protected securities (TIPS) started with the academic papers on the inflation-protected securities (TIPS)  site on Bogleheads (one of my favorite investing forums).
The rationale behind including TIPS as part of the bond holding is for inflation protection. Here is a more detailed description from the Boglehead wiki:
Because unexpected inflation is the biggest enemy of fixed income securities and because TIPS offer unique inflation protection, investors should consider including TIPS in their investment portfolio.
I decided that I still plan to hold 12% in non-stock holdings, but I’ll be splitting it 50/50 between the total bond index and TIPS.
Of course it complicates things somewhat with trying to include the new emerging market ETF, but I think I found a way to make it work.
Another alternative to TIPS are I bonds, which you can now Use Your Tax Refund to Purchase I Bonds .
- How To Select a Guardian for Your Children 
- How Big is Your Financial Safety Net? 
- Calculate How Much Your Debt Costs You Per Month 
- Tips for Selling a Home in a Down Market 
- How to Avoid the Next Real Estate Bubble 
- Missed Mortgage Payment 
By the Numbers
- 3 Disadvantages of Ready Made Meals and TV Dinners 
- 5 Tips to Make Your Home Seem Bigger 
- Win $500