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Old 09-27-2015, 11:12 PM   #21
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Originally Posted by daylatedollarshort View Post
We have both TIPS and CD ladders. We buy TIPS from the Treasury through our Fidelity account, usually some at every auction. We hold to maturity and replace at market rates, getting a rolling average yield.
How have the Tips done over the last few years?
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Old 09-28-2015, 01:51 AM   #22
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How have the Tips done over the last few years?
Like other fixed income, yields have been low on TIPS these past few years compared to their historical averages. The current rates are here:

United States Government Bonds - Bloomberg

Here is a historical graph of the ten year yields:

https://research.stlouisfed.org//fred2/graph/?id=WFII10,
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Old 09-28-2015, 01:54 PM   #23
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Originally Posted by daylatedollarshort View Post
Like other fixed income, yields have been low on TIPS these past few years compared to their historical averages. The current rates are here:

United States Government Bonds - Bloomberg

Here is a historical graph of the ten year yields:

https://research.stlouisfed.org//fred2/graph/?id=WFII10,
Thanks, may be easier to buy into the Vanguard TIPS fund. Although with low yields like they are (maybe going up if inflation comes back), CDs or Guggenheim short term bond funds may be just as good or better.

Can't get hurt with TIPS though especially at rock bottom yields.
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Old 09-28-2015, 01:59 PM   #24
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Met with our Fido rep about revising our investing strategy. He advised trying bond laddering. Was not pushy, just educating us. It looks like a sure thing, as long as the companies don't go bankrupt. We are thinking of doing a 5 year ladder, each rung having $20k. DW and I are 68 and retired. We have a portfolio of 60% bond funds and 40% stocks. Looking for thoughts.
Why do advisers try to make things so complicated? So that you will continue to have to use THEM as your adviser (back door commissions)!

Bond laddering? You can achieve the same thing with a bond index fund. So simple.

He was not pushy. Yeah, it's called passive aggressive. Apparently it worked because you are ready to follow his advice.
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Old 09-28-2015, 02:16 PM   #25
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Thanks, may be easier to buy into the Vanguard TIPS fund. Although with low yields like they are (maybe going up if inflation comes back), CDs or Guggenheim short term bond funds may be just as good or better.

Can't get hurt with TIPS though especially at rock bottom yields.
I know the bond funds vs. ladders strategies each have their pros and cons, but we're mostly into the Anette Thau / bond funds never mature camp. So we have ladders, look at getting our principal back at maturity and a rolling average of rates and a known in advance real rate of return.

I haven't looked at the Guggenheim yields in awhile but the last time I did I thought the TIPS yields, adding in the inflation factor, and low risk / government issued made the TIPS for our goals come out ahead. But I will take another look in today's rate environment at the Guggenheim funds. We have some 401K money with limited investment choices I need to reallocate.
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