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10-16-2011, 04:33 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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How much in TIPS?
For those of us close to or actually in retirement, what %age of your portfolio do you have in TIPS?
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10-16-2011, 04:38 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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0
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Work is something you do to get enough $ so you don't have to....Me.
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10-16-2011, 04:45 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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When TIPs had real coupons over 3% (2000,2001) I had 20+% of my assets in them, plus bought as many EE bonds as I could. At current rates 0%.
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10-16-2011, 04:54 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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O%
However, a sizeable chunk of I-Bonds from the golden years. Planning on buying more before the month ends.
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10-16-2011, 04:57 PM
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#5
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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I have sold pretty much all my TIPS over the past couple of months. They now represent less than 1.5% on my portfolio. If the stock market takes another dive, I'll sell that last bit and buy stocks with the proceeds.
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10-16-2011, 05:11 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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Is everyone a market timer? I've rebalanced from TIPs to equities recently, to keep then around 15%.
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10-16-2011, 05:20 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Location: Denver
Posts: 3,519
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My aim is 5% and I use vanguards TIPs fund. My portfolio is 60% equity, 40% fixed income.
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10-16-2011, 05:20 PM
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#8
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Moderator Emeritus
Join Date: Oct 2007
Location: Portland
Posts: 4,946
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Quote:
Originally Posted by nun
For those of us close to or actually in retirement, what %age of your portfolio do you have in TIPS?
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Half of the bond/fixed income portion of my asset allocation, as a broad TIPS fund. This was fortuitously bought in late 2008, so I can say that TIPS have been very good to me.
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10-16-2011, 05:36 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Quote:
Originally Posted by M Paquette
Half of the bond/fixed income portion of my asset allocation, as a broad TIPS fund. This was fortuitously bought in late 2008, so I can say that TIPS have been very good to me.
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Yes, but the question is, as always, what do you do going forward? Do you cash in those gains and invest elsewhere? Or are you willing to continue to hold on to them and earn a substandard real return (less than 1%) on the current value of those assets?
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10-16-2011, 05:58 PM
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#10
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,130
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Quote:
Originally Posted by JPatrick
O%
However, a sizeable chunk of I-Bonds from the golden years. Planning on buying more before the month ends.
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+1
I-bonds currently at 8.7% of investments.
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Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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10-16-2011, 06:22 PM
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#11
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Moderator Emeritus
Join Date: Oct 2007
Location: Portland
Posts: 4,946
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Quote:
Originally Posted by FIRE'd@51
Yes, but the question is, as always, what do you do going forward? Do you cash in those gains and invest elsewhere? Or are you willing to continue to hold on to them and earn a substandard real return (less than 1%) on the current value of those assets?
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Hold. My investment planning statement says that I keep half of the fixed income funds in TIPS. I know that I'm not capable of knowing what might happen over the next 30 years, but I do know that if I sell right now, I'll realize taxable capital gains as well as put my portfolio out of balance with regard to my investment planning statement.
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10-16-2011, 06:55 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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Quote:
Originally Posted by M Paquette
Hold. My investment planning statement says that I keep half of the fixed income funds in TIPS. I know that I'm not capable of knowing what might happen over the next 30 years, but I do know that if I sell right now, I'll realize taxable capital gains as well as put my portfolio out of balance with regard to my investment planning statement.
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Looks like there are 2 camps here, those with an asset allocation that they rebalance and those that market time.
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10-16-2011, 07:24 PM
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#13
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,726
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We hold no TIPS but our portfolio is all taxable - no tax deferred. If I had a tax deferred option I would put at least 1/4 of our fixed income llocation in TIPS because of their strong diversifying qualities.
On this thread, people that respond zero or close to zero TIPS might comment what they do have in fixed income.
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10-16-2011, 07:34 PM
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#14
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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Quote:
Originally Posted by MichaelB
On this thread, people that respond zero or close to zero TIPS might comment what they do have in fixed income.
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Mainly CDs and intermediate term bonds with a smidgen of i-bonds. I sold the TIPS to buy stocks because my TIPS were up huge and my stocks were down. I think they call it "rebalancing".
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10-16-2011, 07:46 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,022
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Quote:
Originally Posted by FD
I sold the TIPS to buy stocks because my TIPS were up huge and my stocks were down. I think they call it "rebalancing".
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You're a dirty market rebalancer...
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Numbers is hard
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10-16-2011, 09:00 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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Quote:
Originally Posted by FD
Mainly CDs and intermediate term bonds with a smidgen of i-bonds. I sold the TIPS to buy stocks because my TIPS were up huge and my stocks were down. I think they call it "rebalancing".
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So that implies you rebalanced down to your planned allocation......what is that?
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10-16-2011, 09:02 PM
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#17
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Full time employment: Posting here.
Join Date: Apr 2011
Posts: 625
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Quote:
Originally Posted by nun
So that implies you rebalanced down to your planned allocation......what is that?
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Apparently very low, as he said earlier in the thread he's at about 1.5% TIPS.
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10-16-2011, 09:03 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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Quote:
Originally Posted by MichaelB
We hold no TIPS but our portfolio is all taxable - no tax deferred. If I had a tax deferred option I would put at least 1/4 of our fixed income llocation in TIPS because of their strong diversifying qualities.
On this thread, people that respond zero or close to zero TIPS might comment what they do have in fixed income.
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I have 60% bond allocation, so my 15% in TIPS is 25% of my bond allocation. It's there incase inflation takes off with all the money being pumped into the economy.
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10-16-2011, 09:15 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by nun
So that implies you rebalanced down to your planned allocation......what is that?
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I suppose that he will answer, but the question interests me also. I look at the allocation more as a market basket. If chicken is cheap, I buy chicken. If beef or pork is on sale this week, I buy beef or pork. Markets are always reacting to various things, some fundamental but many just due to whims and fancies and various technical factors of trading. I want to fade those market actions.
Even at my age, I would be ok with 90-95% equities, if they are cheap enough relative to fixed, ands even more importantly absolutely. When TIPS were offering 3%+, I bought a lot of them, but foolishly sold them for relatively small gains to buy stocks in the early 00s.
Everything today stinks; it is not a good time to be an investor. My Dad who had no pension put almost his entire net worth into the longest treasuries he could get pretty much at the absolute bottom of the treasury market in 1980. His only equities were some Exxon and Cincinnati Bell that he inherited. That took some nerve, but it fixed his very long deluxe retirement. Todays retirees must poke around in the chicken guts, trying to find some scrap to make a meal from.
Ha
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10-16-2011, 09:18 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by nun
I have 60% bond allocation, so my 15% in TIPS is 25% of my bond allocation. It's there incase inflation takes off with all the money being pumped into the economy.
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Call me crazy, but with such low TIPS yields I think you can hedge inflation far more effectively with modest positions in certain types of equities. Commodity producers, hard asset owners, etc. all work. Better yet is that all these things have inherent and/or financial leverage to inflation, so a little position delivers a lot of inflation protection.
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Ezekiel 23:20
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