Investing In Treasuries

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Bogleit
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Joined: Fri Jan 11, 2019 3:13 pm

Investing In Treasuries

Post by Bogleit » Fri Jan 11, 2019 5:24 pm

I'm looking to allocate a portion($50-100K) of my fixed income to U.S. Treasuries. I'm 72 years old and my total investment portfolio is $900K with a 56% in equities, 38% fixed income and 6% cash. 95% of the portfolio is in an IRA (actually a combo...my IRA and my wifes). Appreciate any suggestions on mutual fund intermediate term options (managed or indexed?) to accomplish the goal (I do not currently own treasuries). Thank you in advance.

ericcohen
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Joined: Wed Dec 26, 2018 9:34 pm

Re: Investing In Treasuries

Post by ericcohen » Fri Jan 11, 2019 6:55 pm

No point in using a manged fund or even a fund. You can buy treasuries at auction for free at Fidelity or Vanguard. When you buy at auction, you get the high rate of the auction, the same rate that all the big players get. You also pay no commission at Fidelity or Vanguard. Just determine what your target maturity is and decide how much you want (increments of 1,000). If for some reason you need to sell, u.s. treasuries are one of the most liquid investments on the planet. Good luck.

3-20Characters
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Joined: Tue Jun 19, 2018 2:20 pm

Re: Investing In Treasuries

Post by 3-20Characters » Fri Jan 11, 2019 7:02 pm

I use VSIGX - Vanguard Intermediate-Term Treasury Index Fund Admiral Shares.

https://investor.vanguard.com/mutual-fu ... view/VSIGX

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abuss368
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Re: Investing In Treasuries

Post by abuss368 » Fri Jan 11, 2019 7:07 pm

Bogleit wrote:
Fri Jan 11, 2019 5:24 pm
I'm looking to allocate a portion($50-100K) of my fixed income to U.S. Treasuries. I'm 72 years old and my total investment portfolio is $900K with a 56% in equities, 38% fixed income and 6% cash. 95% of the portfolio is in an IRA (actually a combo...my IRA and my wifes). Appreciate any suggestions on mutual fund intermediate term options (managed or indexed?) to accomplish the goal (I do not currently own treasuries). Thank you in advance.
Welcome to the Bogleheads!

Before diving into your question I think you should think about your overall asset allocation between stocks and bonds. This is the most important decision an investor will make. Given your age of 72 years old, it appears that you may perhaps have a low allocation to bonds and cash at 44%. Sometimes it becomes more important to protect what we have than to risk it for more!

Specifically to your question, there is nothing wrong with Treasuries. Yes, while you could buy them individually for a little lower cost, personally I would mush rather have the simplicity of a fund. Any short or intermediate term bond fund that is low cost, diversified, and investment grade, will provide safety and income to a portfolio.

I would also consider Vanguard Total Bond Index. There is a good reason why it is the largest bond fund on the planet.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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