daylatedollarshort
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 19, 2013
- Messages
- 9,358
If you want to choose to ignore changes in fair value because you intend to hold to maturity then fine... I think that many here who invest for income have that mindset. But don't expect the rest of the world to look at it that way because it is unlikely to happen.
I assume most people who buy TIPS buy them for the yield and the inflation protection, similar to I bonds. The TIPS coupon is on the bond and the inflation factor is based on CPI, and the formula for calculating the current value and payments are found on the TD site - TIPS/CPI Data — TreasuryDirect. If you don't hold to maturity, you may not get the full benefits of the yield and the inflation protection, which is kind of the whole point, so that is not usually a recommended strategy, especially in a rising rate environment. A ladder strategy assumes holding each rung to maturity. But you do you.
Most posters here who invest for fixed income are buying individual bonds with the intent of holding to maturity, like in the Golden Period for bonds thread - https://www.early-retirement.org/fo...period-for-fixed-income-investing-114400.html.
ETA - If you hold your TIPS at TD, I assume they would just show their current TD value, and you would have to look up the price on the secondary market if you wanted to know that.
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