No. of Recommendations: 0

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.

Print the post  


Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.