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Re: I like my bonds these days
Old 08-03-2006, 01:05 PM   #41
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Re: I like my bonds these days

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Originally Posted by Rich_in_Tampa
These are after-tax funds.
Thanks for the setup.

Since a TIPS fund pays out the inflation adjustment, the tax consequences are no different than any other bond fund.

And if you reinvest dividends, then TIPS held directly are no different from a tax-standpoint than any other type of bond.
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Re: I like my bonds these days
Old 08-03-2006, 05:02 PM   #42
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Re: I like my bonds these days

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Originally Posted by brewer12345
You must hate fixed bonds then. 5% coupon less 4+% CPI = under 1% real yield. A lot worse than TIPS...
If I owned any of those, yep, i'd be pissed.

The only ones I own right now are paying just shy of 8%. And i'm thinking of dumping them at the next downturn in the equity markets.

Wasnt it Peter Lynch who said "bonds are for wimps!"?
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Re: I like my bonds these days
Old 08-03-2006, 05:13 PM   #43
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Re: I like my bonds these days

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Originally Posted by wab
Brewer, you don't understand. This is one of CFB's hairballs.
Yes, avoiding low returning or negative returning asset classes at the wrong time to own them is definitely one of my hairballs.

These things have just a few purposes: lower portfolio volatility, produce income, and reduce the impact of high inflation.

A total return of 2% in 15 months with a high principal loss sounds like they're not doing the trick... :P

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