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Considering selling TIPS and buying Treasuries Today
Old 08-01-2011, 11:13 AM   #1
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Considering selling TIPS and buying Treasuries Today

I have a large TIPS fund that is up 7.5% this year. It is up 0.5% today and Treasuries are down 2%. Given the debt agreement and weak economy it seems increases in interest rates for the next 6 months are unlikely. I have to take out 20% of this account at the beginning of next year and don't want to loose the gains it has. I have found the TIPS funds can be pretty volatile.

Any thought?
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Old 08-01-2011, 11:21 AM   #2
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If you truly need that money in 6 months then yes, I would cash it out. The general rule is to match the duration of the bonds/CD's to when you need the money.

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Old 08-01-2011, 11:26 AM   #3
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I would go cash or perhaps a short term CD.
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Old 08-01-2011, 11:46 AM   #4
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Unfortunately Cash is not an option. Treasury Fund is the closest. It's a deferred salary account with limited choices at Fidelity.
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