Short-term Treasuries for some (or all) of one's fixed income position

[kevink]

Typically excellent post by David Enna on why one might want to set up a ladder of 13 and 26 week TBills on auto-roll (possible at most brokerages - Vanguard excepted)"

https://tipswatch.com/2022/09/21/short-term-treasurys-even-more-attractive-now/

Given raging inflation and the very real possibility of a sustained bear market in bonds I'm starting to think Jonathan Clements' approach of keeping all of one's fixed income in TBills and VTIP may be the best approach going forward - at least for those without the resources or interest in building a TIPS ladder to cover some or all essential living expenses.

 

[foxfirev5]

Maybe or not? Rates can go down just as quick as they went up. Anyway I'll stick to my LMP ladders and take what the market gives me. The equity portion of my portfolio provides all the excitement I need.

 

[audreyh1]

This would be good in the dedicated treasuries thread.

https://www.early-retirement.org/forums/f28/treasury-bills-notes-and-bonds-115186-new-post.html

 

[Golden sunsets]

Maybe or not? Rates can go down just as quick as they went up. Anyway I'll stick to my LMP ladders and take what the market gives me. The equity portion of my portfolio provides all the excitement I need.

What does LMP stand for?

 

[MichaelB]

What does LMP stand for?

Lemon meringue pie?

 

[foxfirev5]

What does LMP stand for?

Sorry. Liability Matching Portfolio. Fixed income maturities that match my future income requirements. Done with nominal securities, TIPS and Series I Bonds. Personally I use several ladders of each to cover my needs. Combined with an equity stake for the excess I hope I'm covered.

 

[daylatedollarshort]

I also Googled LPM, got Last Menstrual Period and was confused.

 

[foxfirev5]

Lemon meringue pie?

Really? If I want to be mocked I'll call one of my kids.

 

[foxfirev5]

I also Googled LPM, got Last Menstrual Period and was confused.

Your dyslexia is showing.

 

[daylatedollarshort]

Your dyslexia is showing.

As it often is!

 

[foxfirev5]

As it often is!

Happens to all of us !

 

[njhowie]

Recency bias.

 

[David3]

I am in the midst of constructing a ladder of 8 week T-bills with auto rollover for a chunk of my emergency cash stash. Pretty easy to do on Fidelity; the only challenge is remembering to place a buy order each Wed morning.