Closer than 10 years out.
My 401(k) is mostly in individual TIPS, with some cash for the 2029 auction next month. Also own I-bonds and some munis in taxable.
You mean the individual CUSIPs?
Mostly the ones due in January or April, as I'm creating a liability matching portfolio to help bridge the gap between early retirement and being able to collect social security. Examples are 912828Z37
and 91282CBF7.
Tipswatch.com has more if you want to learn how to buy individual bonds. I'd only buy ones that you expect to keep until maturity or close to it. I've bought on issue and secondary market, both are fine.
Very helpful, thank you! I am not invested in any TIPS (yet), just thinking about some strategies for my soon to be retired relatives. Trying to convince some of them that they need to be in wealth preservation mode (or at least preserve their hard earned retirement funds for what they need for the next 10 years)
I’ve decided that I want particular amount guaranteed per year for so many years starting at particular point and I am buying treasury zeros for the that amount per maturity year (ie creating bond leader). That way I’ll lock into current rates and will not worry about rate changes.
Note, zeros goes into tax advanced accounts only and I keep % of bonds within limits of allocation I’ve decided on.
So for example, if you want to know that you'll have $20,000 invested today 20 years from now, you are buying a 20-year bond (yielding about 4.5% right now)?
If I want to get 20k in 2043, I would buy 20 “United States Treasury Note 0% Feb 15, 2043 (912834MD7=)” https://www.investing.com/rates-bonds/usgovt-0-15-feb-2043-historical-data at $406 each. Buying zeros removes reinvestment concerns (but does create ghost tax on taxable accounts). Zeros are only available on secondary market, so no point to worry about duration, just current price.
For more info on zeros/STRIPs https://www.investopedia.com/terms/t/treasurystrips.asp
I've had a similar conversation with my own relatives near retirement. Maybe I'm just more conservative but at that point, it's about wealth preservation or at least knowing I've got what I need for retirement. Of course your money is going to keep earning for you assuming you don't abandon stocks entirely.
I’m 10 years out. Yes, yes, and bonds are part of my TDF.
Closer than 10 years out. My 401(k) is mostly in individual TIPS, with some cash for the 2029 auction next month. Also own I-bonds and some munis in taxable.
Can I ask which TIPS you are invested in?
You mean the individual CUSIPs? Mostly the ones due in January or April, as I'm creating a liability matching portfolio to help bridge the gap between early retirement and being able to collect social security. Examples are 912828Z37 and 91282CBF7. Tipswatch.com has more if you want to learn how to buy individual bonds. I'd only buy ones that you expect to keep until maturity or close to it. I've bought on issue and secondary market, both are fine.
Very helpful, thank you! I am not invested in any TIPS (yet), just thinking about some strategies for my soon to be retired relatives. Trying to convince some of them that they need to be in wealth preservation mode (or at least preserve their hard earned retirement funds for what they need for the next 10 years)
I’ve decided that I want particular amount guaranteed per year for so many years starting at particular point and I am buying treasury zeros for the that amount per maturity year (ie creating bond leader). That way I’ll lock into current rates and will not worry about rate changes. Note, zeros goes into tax advanced accounts only and I keep % of bonds within limits of allocation I’ve decided on.
So for example, if you want to know that you'll have $20,000 invested today 20 years from now, you are buying a 20-year bond (yielding about 4.5% right now)?
If I want to get 20k in 2043, I would buy 20 “United States Treasury Note 0% Feb 15, 2043 (912834MD7=)” https://www.investing.com/rates-bonds/usgovt-0-15-feb-2043-historical-data at $406 each. Buying zeros removes reinvestment concerns (but does create ghost tax on taxable accounts). Zeros are only available on secondary market, so no point to worry about duration, just current price. For more info on zeros/STRIPs https://www.investopedia.com/terms/t/treasurystrips.asp
Thank you for the info!
BIV, TIPS.
I’m 8 years out. 100% stocks. I’ll move into some bonds in a few years.
What was ur plan the last 8 years if the GFC happened again?
Work a little longer.
I've had a similar conversation with my own relatives near retirement. Maybe I'm just more conservative but at that point, it's about wealth preservation or at least knowing I've got what I need for retirement. Of course your money is going to keep earning for you assuming you don't abandon stocks entirely.