Need to buy some bonds

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Topic Author
rex
Posts: 72
Joined: Sun Nov 04, 2012 2:58 am

Need to buy some bonds

Post by rex »

Hi Folks,

I have spare 6K coming in tomorrow and wanted to use this to fix my AA a little - right now it's tilted more towards stocks. So here is the dilemma - I usually invested in the following bond funds in my Roth ( TGEIX and VIPSX) and VWITX in taxable( Intermediate term muni). Given the low interest rate environment - I'm not feeling comfortable investing any more in these and was wondering if i should just purchase some IBonds. Note that I currently do not have any IBonds in my portfolio.

Any advise would be much appreciated.

Thanks,
Rex
User avatar
tyler_cracker
Posts: 311
Joined: Sat Dec 03, 2011 1:50 pm
Location: sending out the kicking team

Re: Need to buy some bonds

Post by tyler_cracker »

do you have any other TIPS in your portfolio? if not, i think I Bonds are a good choice. see also http://www.bogleheads.org/wiki/I_Bonds_vs_TIPS.

EDIT: they're a reasonable option regardless, but i think they're especially worthwhile if you don't have other inflation protection in your portfolio.

however, i'm nervous about your apparent motivation for choosing I Bonds:
Given the low interest rate environment - I'm not feeling comfortable investing any more in these
this sounds an awful lot like market timing. remember that you have bonds in your portfolio for a reason. you made a plan, you picked an asset allocation, so you should feel confident acting to keep your portfolio in line with your AA.

gl!
Last edited by tyler_cracker on Mon Apr 01, 2013 11:43 pm, edited 2 times in total.
burma7734
Posts: 56
Joined: Fri May 11, 2012 7:20 pm
Location: San Francisco

Re: Need to buy some bonds

Post by burma7734 »

For your first $10k, I think Ibonds are a one of the "least worst" bond options today. I put $10k in Ibonds this year, then going to put my next $10k in EE bonds.
Topic Author
rex
Posts: 72
Joined: Sun Nov 04, 2012 2:58 am

Re: Need to buy some bonds

Post by rex »

tyler_cracker wrote:do you have any other TIPS in your portfolio? if not, i think I Bonds are a good choice. see also http://www.bogleheads.org/wiki/I_Bonds_vs_TIPS.

EDIT: they're a reasonable option regardless, but i think they're especially worthwhile if you don't have other inflation protection in your portfolio.

however, i'm nervous about your apparent motivation for choosing I Bonds:
Given the low interest rate environment - I'm not feeling comfortable investing any more in these
this sounds an awful lot like market timing. remember that you have bonds in your portfolio for a reason. you made a plan, you picked an asset allocation, so you should feel confident acting to keep your portfolio in line with your AA.

gl!
I have about 3% of my portfolio in Vanguard Inflation protected securities - but feel that's not enough. Thanks for the tip - IBonds seems like a good option for now.
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