Personal Investments • Anyone build a "TIPS" ladder with iShares iBonds?

So am I missing anything?

Advantages
1. Easy to buy (but not too much at once)
2. Distributions of inflation adjustments give cash flow for paying taxes (if held in taxable)
3. Reinvesting distributions reduces reinvestment risk
4. Purchases can be automated

Disadvantages
1. 0.10% EF
2. Small daily volume means you may not get good prices
3. Small market cap means risk of fund closing

Advantages:

1. TIPS are easy to buy and you can buy a lot at once. You might want to monitor your brokerage's treasury page to get a feel.
2. Interest payments on TIPS will often be enough to cover taxes. Otherwise you could sell or, presuming this is not your only investment, sell something else.
3. Reinvestment risk is the risk rates will drop (prices increase). Rates (prices) of TIPS and the iBonds should move in sync.

Statistics: Posted by exodusing — Fri Jan 26, 2024 9:23 am — Replies 18 — Views 1322

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