I have seen a lot of discussion about the idea of using defined maturity etf’s instead of individual TIPS.
I understand the small expense difference and a few other things.
One advantage of the etf’s is the ability to buy in small amounts.
Since I am mostly fixed income and mostly in treasuries, agencies and CD’s with no inflation protection, I am thinking about using my frequent interest payments to reinvest in defined maturity etf’s of various years.
I can speed it up by investing large amounts when bonds or cds mature.
I do not have a specific spending goal but mainly wanting to balance out my bonds for more diversification.
I have seen a lot of posts about SCHP and I could also use that.
I am also assuming that a current TIP defined maturity etf would also increase in value if the current TIP rates of 2 drop down to 1 or below.
Bad idea?
I understand the small expense difference and a few other things.
One advantage of the etf’s is the ability to buy in small amounts.
Since I am mostly fixed income and mostly in treasuries, agencies and CD’s with no inflation protection, I am thinking about using my frequent interest payments to reinvest in defined maturity etf’s of various years.
I can speed it up by investing large amounts when bonds or cds mature.
I do not have a specific spending goal but mainly wanting to balance out my bonds for more diversification.
I have seen a lot of posts about SCHP and I could also use that.
I am also assuming that a current TIP defined maturity etf would also increase in value if the current TIP rates of 2 drop down to 1 or below.
Bad idea?
Statistics: Posted by hoops777 — Sun May 26, 2024 3:44 pm — Replies 1 — Views 149