astromeria
Moderator Emeritus
- Joined
- Aug 13, 2005
- Messages
- 1,375
If you care to, please share why/why not.
Nords said:Don't need bonds, and especially don't like bonds carrying a phantom tax.
astromeria said:If you care to, please share why/why not.
You're taxed on TIPS returns that you actually don't receive until the bond matures.Patrick said:What is the "phantom tax?"
Nords said:You're taxed on TIPS returns that you actually don't receive until the bond matures.
astromeria said:-- This is my only official inflation-protected investment, and it represents just 3% of my portfolio.
Nords said:You're taxed on TIPS returns that you actually don't receive until the bond matures.
JohnEyles said:I'd be curious of people's thoughts, because I too am trying to decide whether to sink a significant percentage of my portfolio into the upcoming TIPS.
2B said:To "break even" against regular 5 year treasuries, you need inflation to run at around 2.5%.
3 Yrs to Go said:At inflation rates higher than ~2.5% you're better off owning TIPS then treasuries.
2B said:By any historical standard, a 2.375% real return is poor.
wab said:Do you have an immediate need to "sink a significant percentage" into TIPS?
astromeria said:I'm in a very similar situation and mind-set, JohnEyles. Approx the same amount of portfolio, overweight cash and corporate bonds, plan = gradually increasing government bonds.
JohnEyles said:Does this seem overboard-about-TIPS ?
Yup. I have a lot in CDs already--and all of it is taxable, and none is inflation-protected. And I'm not living on this income stream yet, just paying taxes on the interest. But if 6% CDs come back (hello PenFed!), I may buy a few more. I can be seduced am opportunistic.2B said:You can almost always get better rates on FDIC insured CDs.
2B said:for those wanting to relive the 1970's.
Mr._johngalt said:I'll tell you what folks.......at my age "reliving the 70s" sounds pretty
good.
JG
and the polyester leisure suits2B said:I'd be glad to be 20 again (maybe) but I could do without the 20% inflation.
astromeria said:and the polyester leisure suits
wab said:2.65% real on the 5-year is the best we've seen in years, so it looks like a pretty good deal to me, but I would still keep some cash in reserve just in case we see even better deals in the months/years ahead.