Considering selling TIPS and buying Treasuries Today

[Safe Harbour]

I have a large TIPS fund that is up 7.5% this year. It is up 0.5% today and Treasuries are down 2%. Given the debt agreement and weak economy it seems increases in interest rates for the next 6 months are unlikely. I have to take out 20% of this account at the beginning of next year and don't want to loose the gains it has. I have found the TIPS funds can be pretty volatile.

Any thought?

 

[DblDoc]

If you truly need that money in 6 months then yes, I would cash it out. The general rule is to match the duration of the bonds/CD's to when you need the money.

DD

 

[FIREd]

I would go cash or perhaps a short term CD.

 

[Safe Harbour]

Unfortunately Cash is not an option. Treasury Fund is the closest. It's a deferred salary account with limited choices at Fidelity.