Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
TIPS ladder for early retiree- practical?
Old 12-28-2010, 07:22 PM   #1
Confused about dryer sheets
 
Join Date: Dec 2010
Posts: 4
TIPS ladder for early retiree- practical?

For a 58 y o retiree with a portfolio heavy on cash, on target on stocks and real estate, and light on bonds, would starting a TIPS ladder by buying individual bonds at auction (as opposed to funds for price protection, predicting rising interrest rates) in a retirement account be practical? Or is it too late to take that approach?

It would require being overweighted in cash and under in bonds for awhile, but that doesn't seem like such a bad idea with my savings accounts currently yielding 1.2-1.75% interest (given the safety factor and the fear of a "bond bubble"). And, if so, how long will it take to build a reasonable "ladder"?- i.e. what percent of my total target TIPS investment would people suggest be made every year until I reach target? I would think developing a good "ladder" with bonds maturing every year or so would take at least five years to start- correct me if I am wrong please.

Any suggestions as to a good way to do it? I could start with the January 10 yr TIPS auction.... (It doesn't seem so wise to lock my total bond investment into today's low yields in a big lump sum I don't think, though perhaps others have different thoughts...)
__________________

__________________
protagonist 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!

Old 12-28-2010, 08:23 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Quote:
Originally Posted by protagonist View Post
For a 58 y o retiree with a portfolio heavy on cash, on target on stocks and real estate, and light on bonds, would starting a TIPS ladder by buying individual bonds at auction (as opposed to funds for price protection, predicting rising interrest rates) in a retirement account be practical? Or is it too late to take that approach?

It would require being overweighted in cash and under in bonds for awhile, but that doesn't seem like such a bad idea with my savings accounts currently yielding 1.2-1.75% interest (given the safety factor and the fear of a "bond bubble"). And, if so, how long will it take to build a reasonable "ladder"?- i.e. what percent of my total target TIPS investment would people suggest be made every year until I reach target? I would think developing a good "ladder" with bonds maturing every year or so would take at least five years to start- correct me if I am wrong please.

Any suggestions as to a good way to do it? I could start with the January 10 yr TIPS auction.... (It doesn't seem so wise to lock my total bond investment into today's low yields in a big lump sum I don't think, though perhaps others have different thoughts...)
I have no comments on whether this is a good strategy at present, I really don't know. At times in the fairly recent past it was a very good strategy.

But for anyone who is interested in TIPS, I recommend a book by a member of this board-Explore TIPS, by The Finance Buff.


Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha 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
starting TIPS ladder in Roth want2er FIRE and Money 25 09-30-2010 09:03 AM
Good time/idea to start a TIPS ladder? beldar3 FIRE and Money 0 10-15-2008 05:38 PM
Early Retiree Here RetireeRobert Hi, I am... 4 10-08-2007 03:40 AM
An early retiree at 45 Life_is_Good Hi, I am... 16 03-26-2007 01:41 PM
Hello from another new early retiree! tpjs1 Hi, I am... 10 01-29-2004 08:51 AM

 

 
All times are GMT -6. The time now is 08:57 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.