dcsimg The Get Rich Slowly Forums • View topic - Online Saving Account vs. Inflation-Protected Mutual Funds

  GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Sun Nov 29, 2015 10:42 am

Post new topic Reply to topic  [ 2 posts ] 
Author Message
 Post subject: Online Saving Account vs. Inflation-Protected Mutual Funds
PostPosted: Wed Mar 06, 2013 12:32 am 

Joined: Thu Sep 20, 2012 12:17 pm
Posts: 3
Hello all,

I've been looking at my ING and Ally online saving account and the interest rate is very low. On the other hand, I see the price of pretty much everything going up: from a bag of M&Ms at the grocery store to houses. I’ve been looking at other investments that could yield a bit more than a simple saving account and protect me against the inflation.

- VIPSX - Vanguard Inflation-Protected Securities Fund Investor Shares
- PRTNX - PIMCO Real Return Fund A

Looking at the historical data, they seem pretty safe investments. I was wondering if people on this forum think about such investments. Have you consider them instead of an online saving account?


Offline Profile E-mail   
 Post subject: Re: Online Saving Account vs. Inflation-Protected Mutual Fun
PostPosted: Wed Mar 06, 2013 8:17 am 

Joined: Fri May 04, 2012 2:23 pm
Posts: 1039
I think you would be smart to study ALL the risks of owning bonds. Especially any risk you would be taking on as it relates to a change in interest rates. Then I'd look at what a Bond fund's avg eff duration is and what it means. Not to mention, the PIMCO fund has a 129% turnover, so you'd get beat up with taxes.

Personally, I use CD's (mine are ~2.5%, obviously that deal isn't currently on the table) and I-bonds for money I need to be "safe." I bonds have some liquidity issues in the 1 st year, but after that it doesn't open the door to a lot of the risks other bonds do. If you're serious about buying I-bonds, I would wait for another month. at that time I will be able to tell you what the inflation component will be doing (and most likely what the overall rate will be for April-October). Currently, I-bonds are paying 1.76%.

Perhaps some exploration around if you can take other risks with all or a portion of the money. If so, now may be the time to study practices of tax efficient investing and the birth of taxable accounts if you haven't already done so.

Bichon Frise

"If you only have 1 year to live, move to Penn...as it will seem like an eternity."

avocado wrote:
Good to see you back, I was starting to miss your incisive commentary!

Offline Profile E-mail   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 2 posts ]  Moderators: bpgui, JerichoHill

Who is online

Users browsing this forum: No registered users and 30 guests

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki