What are the pros and cons of partially funding retirement expenses with an inflation-indexed bond ladder versus an immediate annuity? There is a big downside to TIPS ladders that many investors don't realize. Topics covered include: Show Notes Effortless: Make It Easier to Do What Matters Most by Greg McKeown Essentialism: The Disciplined Pursuit of Less by Greg McKeown Skin in the Game by Nassim Nicholas Taleb Worry-Free Investing: A Safe Approach to Achieving Your … [Read more...]
452 Plus: TIPS Trade, TIPS Bullet Shares ETFs, and Housing Inflation
In Plus Episode 452, we discuss the recent 5-year TIPS auction. We look at the new iShares TIPS bullet shares ETFs with fixed maturity. We also look at the impact of shelter on inflation and how higher interest rates impact home prices and apartment rents. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More About Membership Options » 452 … [Read more...]
429: Which Inflation Protection Strategies Worked and Which Didn’t?
With a total U.S. inflation rate of 14% in the past two years, we review how various inflation hedges performed over the past twenty-four months. Topics covered include: Show Notes CPI Inflation Calculator—U.S. Bureau of Labor Statistics Inflation Beneficiaries ETF—Horizon Kinetics Quadratic Capital Management Episode Sponsors Brooklinen Use code DAVID20 for $20 off plus free shipping Go to GetSunday.com/David to get a customized lawn plan and 20% off your Sunday … [Read more...]
426 Plus: TIPS vs CDs, 1031 Exchange, and a Balanced Leveraged ETF Portfolio
In Plus episode 426, we analyze how to decide between 5-year TIPS or 5-year certificates of deposit. We explore how real estate investors defer taxes through 1031 exchanges and investing in Delaware Statuatory Trusts. Finally, we compare two higher risk strategies: A balanced portfolio of 3x leveraged ETFs or a return stacking strategy that combines stock and long-term bond exposure. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you … [Read more...]
422 Plus: A TIPS Trade, TIPS Taxes, Wash Sale Update, and Finding Alternative Investment Funds
In Plus episode 422, we discuss a recent TIPS purchase David made. We review how TIPS are taxed, including what are original issue discounts. We look at examples of tax loss harvesting trades that Schwab Intelligent Portfolios made that they don't believe violate the wash sale rule. Finally, we discuss the challenge for individual investors in finding alternative investment managers in the venture capital and leveraged buyout areas. Become a Member If you would like to listen to … [Read more...]
410 Plus: TIPS Auction Results, Normal Interest Rates, 90/10 Portfolios, and Financial Independence
In Plus episode 410, we review the results from the recent TIPS auction that David participated in. We look at what determines interest rates and whether there is a normal level. We discuss Warren Buffett's recommended portfolio allocation for a trust he set up. Finally, we look at what financial independence means. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus … [Read more...]
409 Plus: Buying TIPS at Auction, Building a TIPS Ladder, and Deciding Between Short-term and Long-term Bonds
In Plus Episode 409, we introduce the Money For the Rest of Us affiliate program. We discuss the complexities of purchasing a Treasury Inflation Protection Security at a reopened U.S. Treasury auction. We consider why yields on newly issued TIPS are lower than the yield on TIPS that have been outstanding for a while, even though both bonds have the same maturity. Finally, we consider how to decide between owning short-term bonds versus long-term bonds. Become a Member If you … [Read more...]
407: Worry-Free Retirement Investing
How to use laddered inflation-indexed bonds (i.e., TIPS), CDs, fixed annuities, and fixed index annuities to meet retirement living expenses while worrying less about running out of money. Topics covered include: Show Notes Worry-Free Investing by Zvi Bodie and Michael J. Clowes Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis, Inflation-Indexed—FRED Market Yield on U.S. Treasury Securities at 5-Year Constant Maturity, … [Read more...]
402 Plus: Buying TIPS, Taxes and Bonds, and Calculating Investment Returns
In Plus Episode 402, we discuss purchasing individual Treasury Inflation Protection Securities versus TIPS ETFs. We look at how bonds are taxed and how to tax-adjust municipal and corporate bonds. Finally, we compare return on investment with time-weighted and dollar-weighted returns. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More About Membership Options » … [Read more...]
Portfolio Trade: Adding Individual Treasury Inflation Protection Security
Become a Member If you would like to read about this portfolio trade, consider becoming a member of Money For the Rest of Us Plus. Learn More About Membership » Today David purchased an individual Treasury Inflation Protection Security in the secondary market through his online broker. The inflation-indexed bond matures in April 2024 and was priced with a yield-to-maturity of 1.3%. The original coupon rate is 0.5%. Here is the CUSIP number for the bond: 9128286N5 U.S. real … [Read more...]
