Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
TIPs index vs. Total Bond index
Old 04-14-2005, 06:22 PM   #1
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 463
TIPs index vs. Total Bond index

I guess given the state of the bond market the correct answer is "neither", but.....loving simplicity I have our IRA funds all in Vanguard Target Retirement Income fund (50% Bond Index, 20%TIPS,5% Money Market, 25% Total Stock Index). I like the risk/reward history of this allocation, but between reading "The Coming Generational Storm" & some of John Greaney's studies am tempted to put most or all of my taxable bond allocation into TIPS, or at least go 2:1 TIPs to Total Bond Index.

The other consideration is I am substantially committed to REITS, and have been told by one knowledgeable person that those are sufficient inflation protection & stay out of more TIPS.

Any thoughts appreciated!

__________________

__________________
kevink is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: TIPs index vs. Total Bond index
Old 04-14-2005, 06:27 PM   #2
 
Posts: n/a
Re: TIPs index vs. Total Bond index

Quote:
but between reading "The Coming Generational Storm" & some of John Greaney's studies am tempted to put most or all of my taxable bond allocation into TIPS, or at least go 2:1 TIPs to Total Bond Index.
Quit reading financial books and enjoy your retirement. 8) - Otherwise, you'll just drive yourself crazy.
__________________
  Reply With Quote
Re: TIPs index vs. Total Bond index
Old 04-14-2005, 07:24 PM   #3
Thinks s/he gets paid by the post
charlie's Avatar
 
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: TIPs index vs. Total Bond index

Check out floating rate bonds that pay x% + CPI.
I have some that average 2% + CPI (or about 5%
total now). These bonds are reset monthly at
the current CPI and pay monthly. At least you
get the current income to pay your taxes .....
unlike TIPS bonds. However, Vanguard's TIPS
fund does pay the total amount monthly .... but
the real rate is only about 1.4% the last time I
looked.

"The Coming Generational Storm" is a real eye
opener ..... you are wise to "read and heed"

Cheers,

Charlie
__________________
charlie is offline   Reply With Quote
Re: TIPs index vs. Total Bond index
Old 04-15-2005, 05:45 AM   #4
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,778
Re: TIPs index vs. Total Bond index

I have a position in the Vang. TIP fund. I need to recheck that 1.4% charlie. But I bought in months ago below yesterdays 12.55, the divvvies, STCG and LTCG payouts tally to 1.8% and the paper profit on the NAV gain adds a half percent. And it was practically my only position that went UP yesterday.

Boring, yes...underperforming, maybe....a loser, no. Whats not to like?

BUM
__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Approximate Vanguard Total Stock Market Index with S&P 500 and other fund(s)? Dude FIRE and Money 17 02-18-2007 08:25 PM
TIPS: Buy Bond or Bond FUND? Pros & Cons please! Jane_Doe FIRE and Money 67 11-20-2006 09:29 PM
Real allocation of total stock index Rich_by_the_Bay FIRE and Money 3 08-20-2006 05:28 PM
TIPS: bonds vs bond funds wabmester FIRE and Money 4 07-07-2005 08:25 AM
Total market index vs asset classes Roger_R FIRE and Money 5 06-12-2004 06:27 PM

 

 
All times are GMT -6. The time now is 09:40 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.