Gyroscopic Investing

Barrett asked the initial question in creating this topic.

I know that there are several of us here who are active purchasers of iBonds.

But is Barrett the only one who directly owns TIPS (not TIPS funds)?

I am almost certain that I will soon be buying some. Therefore, would be looking for any guidance that anyone can provide who currently owns them.

One major advantage that they do have over iBonds is that they do not have that peculiar limitation that iBonds seems to be the only investment to have -- a limitation in how much investment you can make in them in a year, in one lump sum.

If one had $200,000 and wanted to make 75% of it Treasuries ($150,000) ... one could do that today in TIPS. It would take 10 (!!!) years to achieve that in iBonds (and, that is only if one went 10-10 in succeeding in being able to buy them via an annual $5,000 tax refund. If one only goes 5-10 that make it 12.5 years!).

As the poorest person here, hard to feel sorry for someone with that problem =) iBonds are a free lunch, morlike cash than a bond and usually pay better than cash alternatives. You could argue the gov has a responsibility to offer you something that matches real inflation tho

edit1: IIRC 10k per year but doesnt have to be in one payment eg 5k in Feb and 5k in Oct

yankees60 wrote: ↑Mon Jul 10, 2023 7:45 am One major advantage that they do have over iBonds is that they do not have that peculiar limitation that iBonds seems to be the only investment to have -- a limitation in how much investment you can make in them in a year, in one lump sum.

If one had $200,000 and wanted to make 75% of it Treasuries ($150,000) ... one could do that today in TIPS. It would take 10 (!!!) years to achieve that in iBonds (and, that is only if one went 10-10 in succeeding in being able to buy them via an annual $5,000 tax refund. If one only goes 5-10 that make it 12.5 years!).

Just reiterating that I really don't get why investors commonly compare TIPS to I-Bonds. I-bonds can only be held in "taxable", that is, outside of tax-advantaged accounts. TIPS, due to tax complications are best held in tax-deferred or Roth accounts. The real questions that we should be asking are:

1) Can I-Bonds help me get where I want to go with my taxable assets?
2) Can TIPS help me get where I want to go with my tax-advantaged accounts?

For me the answers are yes and yes. I-bonds good. TIPS also good.

barrett wrote: ↑Tue Jul 11, 2023 12:06 pm

yankees60 wrote: ↑Mon Jul 10, 2023 7:45 am
One major advantage that they do have over iBonds is that they do not have that peculiar limitation that iBonds seems to be the only investment to have -- a limitation in how much investment you can make in them in a year, in one lump sum.

If one had $200,000 and wanted to make 75% of it Treasuries ($150,000) ... one could do that today in TIPS. It would take 10 (!!!) years to achieve that in iBonds (and, that is only if one went 10-10 in succeeding in being able to buy them via an annual $5,000 tax refund. If one only goes 5-10 that make it 12.5 years!).

Just reiterating that I really don't get why investors commonly compare TIPS to I-Bonds. I-bonds can only be held in "taxable", that is, outside of tax-advantaged accounts. TIPS, due to tax complications are best held in tax-deferred or Roth accounts. The real questions that we should be asking are:

1) Can I-Bonds help me get where I want to go with my taxable assets?
2) Can TIPS help me get where I want to go with my tax-advantaged accounts?

For me the answers are yes and yes. I-bonds good. TIPS also good.

Agree with all your points. However, these is a decided anti-TIPS, pro-iBonds stance among many in this forum. I'm getting as many iBonds as I can. But they alone do not suffice if you have a certain amount you want to put into treasuries.