Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 18, 2022 12:58:43 GMT -5
So, with the new ibond craze, I opened up a treasury direct account. so far I only have ibonds in there.
Was looking at tips for when I finish my ibond purchase for the year.
There is a 5 year TIPS for auction in april and in march a 9 year 10 month issue. What does this all mean? Why an auction and not a purchase? What are the terms? I can't find out.....
I know there are ETFs for this, but trying to compare a direct purchase, and I just don't know enough to even figure out what is happening, lol!
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Rukh O'Rorke
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Joined: Jul 4, 2016 13:31:15 GMT -5
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Post by Rukh O'Rorke on Feb 18, 2022 13:02:27 GMT -5
okay, so I must be feeling pretty loopy today.
Rather than even waiting for any replies, I decided to do a 100 purchase of each (the 5 year and 9.10 year) TIPS just to see what is up/toe in the water kind of thing.
Anyone care to join me?
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 18, 2022 13:02:51 GMT -5
Mother always said I couldn't leave a hot stone alone.....
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Tiny
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Post by Tiny on Feb 18, 2022 23:01:30 GMT -5
I may be joining you with a toe in the water... but I don't have any money right now. I have the last CD that was part of my EF coming due in a week. So, you may to wait a bit... as I may join the TIPS fray...
(FWIW: I remember learning about EE bonds and tips in HS and then again in a college econ course and I distinctly remember how the explanation of Tips (and other not EE bonds) worked gave me the weirdest feeling as my eyes glazed over and my brain went numb. I think it was because I literally had no idea what was going on - even though I had read the material, tried to review it before class, and hoped that it would be clearer if someone explained it (the teacher) but no luck.
The only other thing that made my brain go numb like that was whenever I would attempt to calculate my characters AC in DnD 2.0 --- you added in negatives and removed positives and you wanted big negatives because those were better than positive numbers - and then you used a table and added in/took away some more stuff and oh never mind - my brain went numb....)
Basically, I have trouble when all the stuff you take away or remove tells you what you have left ... without actually telling you what you have just what you don't have... I didn't KNOW what I had before the stuff started getting taken away--- so I can't figure out what I have left)
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vonna
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Post by vonna on Feb 19, 2022 7:53:55 GMT -5
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 19, 2022 12:18:06 GMT -5
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 20, 2022 13:33:06 GMT -5
so reading around, sounds like you cant cash them out from TD, you have to transfer to brokerage to sell or wait till they mature.
so i see the appeal of having them in etf form.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 20, 2022 13:41:46 GMT -5
I guess I'll think about layering them like cds, buying in each year till have some maturing each year.
Wish I had started with the ibonds and tips a few year earlier. on the other hand, I may still be working a few more years with this inflaiton and stock market decline going on.
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djAdvocate
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Post by djAdvocate on Feb 21, 2022 0:53:10 GMT -5
i have quite a bit of the TIP ETF.
management fees eat up a bit of it,
but i like the liquidity.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 21, 2022 11:38:44 GMT -5
I’m thinking the liquidity is only an issue while building up the allocation.
And then if rebalancing was a thing.
For me I am aiming for x years expenses in safe vehicles and keep everything else in stocks. Tips in TD would work well if that x was 5 years. And you build up 5 year tips 5 years before retirement!
Right now I am just starting to diversify out of stocks so not sure where I’m going or even when I plan to retire. Which could be this year if the market roars back, or 5 years from now if the market keeps declining and doesn’t recover.
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djAdvocate
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Post by djAdvocate on Feb 21, 2022 16:51:15 GMT -5
me too. i would never have even considered a bond investment before now.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 21, 2022 17:39:20 GMT -5
One negative seems to be they are not taking money out of my checking till the auction, when I make decisions, I want it done!!
And I’ll never remember those dates….
Oh wait, I have a blank 2022 planner…maybe I’ll put those in there, mebbe see if I can up the ante by then. Will depend on what’s in my acct that week.
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