If you can graph it, I expect you will see that the price volatility has been pretty extreme.How big a gamble would I be taking if I invested 30% of my rollover IRA assets in the Inflation-Protected Treasury Bond maturing in 2054? This bond’s maturity is several years beyond the life expectancy of one of the two us (about 23 years). Most of the balance of my IRA would be invested in the Vanguard Wellesley Income Fund. The cash flow from the TIPS and the Wellesley fund should take care of most of the RMDs. I’m not interested in creating a TIPS ladder because I dislike the idea of purchasing bonds selling for considerably more than their initial par value (deflation risk). My IRA comprises less than 1/3 of our assets. I’m intrigued by the idea of locking in a “real” 2.3% Treasury bond return for 30 years.
If you can live with just the coupon, which is CPI indexed, then the investment would be OK.
Statistics: Posted by Valuethinker — Mon Apr 22, 2024 3:56 am — Replies 3 — Views 545
