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newguy05
Registered: Oct 2007
Posts: 1762 |
03-22-12 07:34 PM
Like to get some feedback about long term investment in an inflation indexed bonds etf.
I have build up a decent amount in my company 401k, but it has very limited investment options - just a few etf index funds. One of them invests in inflation indexed bonds. With the assumption that inflation / interest rate will start to kick in within 5 years, is it a good idea to invest in this?
If the assumption is interest will go up, then one should not investment in us treasuries but on the flip side that also means inflation will be going up. So looking for some opinions on putting my money in this etf right now, looking to do about 20% allocation.
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oldtime
Registered: Jun 2011
Posts: 7298 |
03-22-12 08:49 PM
I would not buy them in a ETF. There isn't that much money in them even if everything goes well. And then when you have to give up the little you make in management and expense fees, it isn't worth it.
The beauty of 401k and IRA's is you are protected from cap gains tax. So it makes more sense to invest more aggresively (high turnover) in tax sheltered accounts.
If I Bonds fit into your retirement plan, you would be better off just buying them outright with your personal money and holding them to maturity.
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nazzdack
Registered: Jul 2004
Posts: 8405 |
03-22-12 09:12 PM
Quote from Bob111:
----i see....
----benny and barry....
----greece or iceland
1) You appear to be answering a question that you wish I would have asked. 
2) Bob, do you fuly understand what can happen to that ETF during a deflationary spiral? 
3) Did you compose your other response on a smartphone? 
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