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
Need to buy some bonds
- tyler_cracker
- Posts: 311
- Joined: Sat Dec 03, 2011 1:50 pm
- Location: sending out the kicking team
Re: Need to buy some bonds
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:
gl!
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:
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.Given the low interest rate environment - I'm not feeling comfortable investing any more in these
gl!
Last edited by tyler_cracker on Mon Apr 01, 2013 11:43 pm, edited 2 times in total.
Re: Need to buy some bonds
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.
Re: Need to buy some bonds
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.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:
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.Given the low interest rate environment - I'm not feeling comfortable investing any more in these
gl!