but I have to admit I don't and ask for an explanation. I am in the VG TIPS fund. I thought that, since there is a guaranteed return of the rate of inflation, the fund would go up by at least that amount. The fund is going down. Why is that?
smooch said:but I have to admit I don't and ask for an explanation. I am in the VG TIPS fund. I thought that, since there is a guaranteed return of the rate of inflation, the fund would go up by at least that amount. The fund is going down. Why is that?
samclem said:Bond funds are more convenient to buy and keep track of than are individual TIPS, and they can sometimes produce better results over short periods than buying the bonds themselves. But, buying TIPS directly from the treasury can be done at very low cost and there's no annual expense fee to pay.
sc said:I agree with everything you wrote, but want to add something... The last time I checked, they did not offer IRA accounts at TreasuryDirect.
Peter said:But you can buy TIPS at auction through Fidelity, for holding in your IRA. I'm sure Vanguard will do the same.
samclem said:sc,
- I've never bought Treasuries through Fidelity (where I have my 401K), but I believe it is possible to buy initial issues through them for less commission than buying traesuries on the secondary market (through them).
samclem