Talk about all basic (i.e. non-personal) investing questions and points, investing information, and idea.
Sell Total bond fund (BND) to fund TIPS ladder
Does it make sense to promote Complete bond fund (BND) to fund a 20 yr TIPS ladder.
Actual TIPS common curiosity is about 1.69% and BND is down for me about -7.52% from its excessive of Aug 2020. Strategies?
Re: Sell Total bond fund (BND) to fund TIPS ladder
Vastly extra data is required. What are your targets? Your age? Your revenue, asset allocation, wealth, and so on.
Your speaking about property with completely different targets. A bond fund is supposed to present low volatility returns. They’re usually used to as an uncorrelated asset with shares to clean out returns. A suggestions ladder is supposed to offer very particular actual quantities over a particular timeframe, usually as a bridge to retirement or a technique to assure some minimal revenue in retirement.
41% VTSAX, 35% VTIAX, 4% VSIAX, 20% VSIGX. 80/20 S/B, 57/43 US/INT, 10% of US holdings allotted to small-cap worth. All bonds are US treasuries.
Re: Sell Total bond fund (BND) to fund TIPS ladder
You additionally appear to assume that TIPS can’t lose cash. That isn’t true.
This signature message sponsored by sscritic: Study to fish.
Re: Sell Total bond fund (BND) to fund TIPS ladder
It is smart in some conditions.
What are your causes for proudly owning bonds in your portfolio?
What would a TIPS ladder do for you that BND or TIPS bond fund would not assist with?
Re: Sell Total bond fund (BND) to fund TIPS ladder
For me the reply was to have each. When actual yields went over 2% I invested 10% in a suggestions ladder. I am keen to go to fifteen% if yields keep close to 2%. I additionally personal BND although. I most likely have 5% now however my goal is 10%. For the person suggestions I am keen to carry them to maturity so I do not care if charges rise once more. If charges have been to fall near 0 once more I will most likely promote. In any other case I will money them as they mature. Getting 2% + inflation looks as if a superb deal to me.
-
- Posts: 1720
- Joined: Mon Mar 20, 2017 10:27 pm
- Location: California
- Contact:
Re: Sell Total bond fund (BND) to fund TIPS ladder
I don’t belief measured inflation; that’s the reason I’m in nominal bonds solely. BND had a 5% come again within the final 3 months. Watch out of a market timing transfer that might lock in your losses.
Previous consequence doesn’t predict future efficiency. Talked about investments could lose cash. Contents are introduced “AS IS” and any implied suitability for a specific function are disclaimed.
- Posts: 2350
- Joined: Solar Jul 26, 2020 2:29 pm
Re: Sell Total bond fund (BND) to fund TIPS ladder
Important bandwidth on this web site been dedicated to that matter, particularly TIPS fund versus TIPS bond ladder. On BH, TIPS ladders are all however mentioned in hushed quasi-religious tones. 
Retirement is greatest when you will have quite a bit to reside on, and quite a bit to reside for. * None of what I submit is funding recommendation.* |
FIRE’d July 2023
Re: Sell Total bond fund (BND) to fund TIPS ladder
AlwaysLearningMore wrote: ↑Solar Sep 08, 2024 9:06 pmImportant bandwidth on this web site been dedicated to that matter, particularly TIPS fund versus TIPS bond ladder. On BH, TIPS ladders are all however mentioned in hushed quasi-religious tones.
Sure certainly 
Although the aim of my query was for the OP to assume issues by and work out how or even when TIPS are one thing he wants.
Re: Sell Total bond fund (BND) to fund TIPS ladder
Charges have been close to zero in 2020, market charges for bonds charges went up, final result would have been related holding suggestions of the same length
Re: Sell Total bond fund (BND) to fund TIPS ladder
Why are you asking?
World shares, IG/HY bonds, gold & digital property at market weights 75% / 19% / 6% || LMP: TIPS ladder
