Hello Bogleheads,
I'm thinking I want to move some of my fixed income holdings into an intermediate TIPS fund. Looking to get around 20-25% of bonds in TIPS by early retirement in about 4 years at age 52.
I can either exchange some VBTLX in a traditional IRA into Vanguard's VAIPX or I have a state street TIPS fund in my company's 401k that I could either start contributing to or also exchange into. There is a 6 basis point difference in cost (401k is cheaper) but doesn't seem to be enough to worry about. I'm partial to the idea of holding in an IRA because the 401k fund offerings could change, but does it matter?
I understand on the equity side that it generally makes sense to invest a lump sum all at once. Is there any difference in thinking on this for bonds or TIPS specifically for some reason or knowing that this is an exchange of existing investments or via new contributions?
Would you:
1. Exchange VBTLX for VAIPX in tIRA all at once
2. Exchange State Street total bond index for state street TIPS fund in 401k all at once
3. Just start new contributions to State Street TIPS fund in 401k in place of total bond index 401k contributions and build over time. Assuming new contributions will get me to my desired TIPS allocation.
Thanks.
I'm thinking I want to move some of my fixed income holdings into an intermediate TIPS fund. Looking to get around 20-25% of bonds in TIPS by early retirement in about 4 years at age 52.
I can either exchange some VBTLX in a traditional IRA into Vanguard's VAIPX or I have a state street TIPS fund in my company's 401k that I could either start contributing to or also exchange into. There is a 6 basis point difference in cost (401k is cheaper) but doesn't seem to be enough to worry about. I'm partial to the idea of holding in an IRA because the 401k fund offerings could change, but does it matter?
I understand on the equity side that it generally makes sense to invest a lump sum all at once. Is there any difference in thinking on this for bonds or TIPS specifically for some reason or knowing that this is an exchange of existing investments or via new contributions?
Would you:
1. Exchange VBTLX for VAIPX in tIRA all at once
2. Exchange State Street total bond index for state street TIPS fund in 401k all at once
3. Just start new contributions to State Street TIPS fund in 401k in place of total bond index 401k contributions and build over time. Assuming new contributions will get me to my desired TIPS allocation.
Thanks.
Statistics: Posted by newbogleheader02 — Mon Oct 07, 2024 5:51 pm — Replies 0 — Views 85