investments a bear would love
- Thread starter Martha
- Start date
I have TIPS in my 401(k) and given our tax situation I also don't want to buy in a taxable account. Thinking about I bonds and CDs but not really sure yet. EEbonds are paying 3.25% right now. The nice thing about these bonds is no taxes until you cash them in. We do have some old EEbonds that are at a 4% guaranteed rate.
While I look at these conservative investments, my spouse again talks more metals and currency plays. Scary to me.
While I look at these conservative investments, my spouse again talks more metals and currency plays. Scary to me.
unclemick
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
? Being left handed - and a Boglehead - park in Vanguard Retirement Series- Income and wait.
J
John Galt
Guest
Her husband talks metals and currency plays,
planning that Martha finds scary.
Looking to ER she's still off a ways.
She should tell him about the tooth fairy.
JG
planning that Martha finds scary.
Looking to ER she's still off a ways.
She should tell him about the tooth fairy.
JG
Hi Martha_M,
IF you qualify as an accredited investor you may want to check out Interactivebrokers.com. They have pretty low commission and you can buy about anything in the account (stocks, bonds, options, foreign investments, etc); but, they also issue some bonds themself. They pay 8% annualized and have a 15 month maturity, but they can be called in 3 months and they intend to do so. They have done this for the last 3 years, as a means of offering a short-term higher return option for there customers. They do charge a $1 per thousand commission, which will lower your yield somewhat. They are not insured and not registered with SEC (thus you have to be accredited investor) so do your homework, but there financials look pretty good to me.
IF you qualify as an accredited investor you may want to check out Interactivebrokers.com. They have pretty low commission and you can buy about anything in the account (stocks, bonds, options, foreign investments, etc); but, they also issue some bonds themself. They pay 8% annualized and have a 15 month maturity, but they can be called in 3 months and they intend to do so. They have done this for the last 3 years, as a means of offering a short-term higher return option for there customers. They do charge a $1 per thousand commission, which will lower your yield somewhat. They are not insured and not registered with SEC (thus you have to be accredited investor) so do your homework, but there financials look pretty good to me.
C
Cut-Throat
Guest
You know Unclemick, I think this is a great idea. I think I'm gonna forget all about CDs and do this instead.
After I dip this toe in the water, I may just go whole hog with my stock porfoilo into one of their stock retirement funds. - And then do nothing - Except catch fish.
Well, I just made a big step for me in my IRA
bond allocation.
I bought a floating rate CD on the secondary market
that matures on 6/03/2014. The price was 101.3.
After commission and accrued interest, the total
cost was $101,387.67.
The good news is that the "floater" pays 2% + CPI
or about 5.52% right now. The real rate on 10
year TIPS is about 1.7% ..... so I am happy!
This brings my TIPS equivalent to about 25% of my
IRA ..... same as Vanguard's Target Retirement
Income fund. I hope they have it right.
1.98% real yield is a damn sight better than the current
1.22% real that Vanguard is paying on their fund
for equivalent maturity.
I like the "floater" concept because it pays the interest
up front. Downside vs TIPS is that in 9 years at maturity my CD will have depreciated in real value.
Oh well, I like to eat dessert first!
Cheers,
Charlie
bond allocation.
I bought a floating rate CD on the secondary market
that matures on 6/03/2014. The price was 101.3.
After commission and accrued interest, the total
cost was $101,387.67.
The good news is that the "floater" pays 2% + CPI
or about 5.52% right now. The real rate on 10
year TIPS is about 1.7% ..... so I am happy!
This brings my TIPS equivalent to about 25% of my
IRA ..... same as Vanguard's Target Retirement
Income fund. I hope they have it right.
1.98% real yield is a damn sight better than the current
1.22% real that Vanguard is paying on their fund
for equivalent maturity.
I like the "floater" concept because it pays the interest
up front. Downside vs TIPS is that in 9 years at maturity my CD will have depreciated in real value.
Oh well, I like to eat dessert first!
Cheers,
Charlie
