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Subject:  Re: TIPS: To Protect Yourself Date:  12/7/2008  11:26 PM
Author:  Lokicious Number:  25261 of 36325

Buying the fund gives one an 'instant' bond ladder, and instant liquidity, if necessary, or desired.

Not true. If you buy (and ladder) TIPS and hold to maturity, what the tradable value is between time of purchase and maturity is irrelevant. With a bond fund, if the NAV when you sell is less than when you buy, you will lose principal. And if you buy when TIPS fixed yields in the fund are lower than when you sell, you will sell shares for less than you paid for them.

It isn't as bad now as it was a few months ago, but not as good as a few weeks ago (I presume what you posted was written was TIPS were over 3% not back down near 2%, last I looked.)
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