vipsx vs savings account

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Topic Author
siker
Posts: 37
Joined: Tue Aug 14, 2018 3:10 pm

vipsx vs savings account

Post by siker »

Hi,

I have money saved for down payment to buy a house. I do not know how long it will take for me to buy a house, it could be this year or 3 years from now. Will a high yield savings account be a better place to keep the money or VIPSX (vanguard inflation protected securities)? I am thinking of VIPSX because it seem easy to transfer money to my Vanguard account and buy it, I have not bough TIPS etc before.

I am worried about inflation. I understand that though the official inflation numbers are not up yet, the product I want to buy - a house is already inflated. Alternatively is there a fund such as reit etc which will track house prices, so if house prices continue to rise, the value of my savings will rise accordingly. I am fine with a certain amount of risk.

Thank you,
Sudhir
Last edited by siker on Wed Apr 21, 2021 6:04 am, edited 1 time in total.
tibbitts
Posts: 13605
Joined: Tue Feb 27, 2007 6:50 pm

Re: vipx vs savings account

Post by tibbitts »

siker wrote: Tue Apr 20, 2021 3:59 pm Hi,

I have money saved for down payment to buy a house. I do not know how long it will take for me to buy a house, it could be this year or 3 years from now. Will a high yield savings account be a better place to keep the money or VIPX (vanguard inflation protected securities)? I am thinking of VIPX because it seem easy to transfer money to my Vanguard account and buy it, I have not bough TIPS etc before.

I am worried about inflation. I understand that though the official inflation numbers are not up yet, the product I want to buy - a house is already inflated. Alternatively is there a fund such as reit etc which will track house prices, so if house prices continue to rise, the value of my savings will rise accordingly. I am fine with a certain amount of risk.

Thank you,
Sudhir
VIPX? I didn't know that was, as you say, Inflation Protected Securities. Short term or "regular"? I assume you'd want short-term. I owned both flavors for a while. I didn't see any particular correlation to real estate prices. I think you'll find REITs more correlated with the equity markets over the short term than with real estate. I think I understand what you want but I don't know of any investment that fits particularly well.
Topic Author
siker
Posts: 37
Joined: Tue Aug 14, 2018 3:10 pm

Re: vipsx vs savings account

Post by siker »

Thank you tibbitts, sorry it was a typo, it is VIPSX

https://www.morningstar.com/funds/xnas/vipsx/quote
Room604
Posts: 4
Joined: Tue Apr 20, 2021 6:46 am

Re: vipsx vs savings account

Post by Room604 »

VIPSX can go up and down like any bond fund, so you could possibly lose money.

A savings account will not give you much interest, but you will not lose money.
Topic Author
siker
Posts: 37
Joined: Tue Aug 14, 2018 3:10 pm

Re: vipsx vs savings account

Post by siker »

Thank you room605
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