lawman
Thinks s/he gets paid by the post
I am self directed and have two large corporate bond funds I am considering exchanging for something with less risk. I am considering the ETF "SHY"..Is there anything else that safe that pays more? Thanks
You are exchanging corporates for US Treasuries and it doesn't get any safer than that. However, are you sure you want to take such an extreme position? Except for TIPS and I-Bonds, my entire fixed income portfolio is corporates and I'm quite comfortable with that.
Gill
IMO TIPS are the low-risk option, especially for money that will stay invested long term. You can't get that kind of inflation catastrophe protection anywhere else. Yields are a little hard to estimate because the YTM calculation is simply a lower bound, effectively assuming zero inflation. But with any reasonable inflation estimate added to the coupon rate the yield is not terrible.... I want to be reasonably sure I can maintain my lifestyle in the event of real financial economic catastrophe..
IMO TIPS are the low-risk option, especially for money that will stay invested long term. You can't get that kind of inflation catastrophe protection anywhere else. Yields are a little hard to estimate because the YTM calculation is simply a lower bound, effectively assuming zero inflation. But with any reasonable inflation estimate added to the coupon rate the yield is not terrible.
Yes. I have never done I-bonds because the annual purchase limit is so low. We just buy TIPS directly, not a TIPS mutual fund. There is not much of a yield curve, so we don't even ladder. Since 2004 we have held basically one issue, the 2s of 2026. A year or so ago I bought some that mature in 2021. Those $$s are part of the psychological bucket that we will be spending as necessary until the equity market settles down. On that shorter issue I may have done better with treasury notes but I didn't check. From many posts here it's clear that chasing basis points makes a really enjoyable and absorbing hobby, but I'm just not into it.I love my I-Bonds..I wish I had bought more 20 years ago..
Tax free bond income counts for Medicare premiums- not like for Federal income tax.
On a side note I also need to get my taxable income down to avoid higher Medicare premiums..What is safe fund or ETF that is federally tax exempt?
On a side note I also need to get my taxable income down to avoid higher Medicare premiums..What is safe fund or ETF that is federally tax exempt?
Really? First level IRMMA with Rx kicker is a whole $800 a year.