The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments


Subject:  How to - TIPS in Discount IRA Date:  6/17/2002  2:08 PM
Author:  John3haha Number:  3976 of 36397


I think I would like to put $25,000 into a 4.5-5 year TIPS security within an existing self managed IRA. I have been trading stocks for quite a few years on my own using the discount broker's (TD Waterhouse) web site. I was not clear how to buy a bond through the brokerage.

I tried calling Treasury Direct after looking at their web site. The customer service rep was not helpful, but is mailing me a package to set up a new account. I think I could handle a direct purchase fairly easily outside my IRA (we have a smidgeon of I-Bonds for a while back) by getting the cusip, etc.

One post on this board suggested bagging the direct purchase approach and getting Vaguard's TIPS fund (VIPSX) which appears to now be trading at its 52 week high and yielding 2.8% + inflation as defined. I know I can do this within the IRA but the 0.25% fee and ability of Vanguard to change maturity seem negatives.

It appears clear to me we are at or near a low point for interest rate. I feel confident they will rise over time. Buying a Treasury security directly and holding to maturity is intended to minimize the risk of capital loss after rates have risen.

Help would be welcome.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us