Should I cache cash in a TIPS fund while waiting to be used to buy I Bonds?
- billthecat
- Posts: 1052
- Joined: Tue Jan 24, 2017 1:50 pm
- Location: USA
Should I cache cash in a TIPS fund while waiting to be used to buy I Bonds?
The 7/8ths of my fixed income is total bond - and that’s 100% of my tax deferred account, and more in my taxable account (tax-free is 100% total market). The other 1/8th of my fixed income is cash, such as high yield savings and I Bonds. I like I Bonds as they are straightforward in how they work. Adding I Bonds is slow, though, and so I have cash lying around waiting to buy I Bonds. Should I move my cash (savings earning 0.5%) in a TIPS fund, like SCHP (ER, 0.05%), and draw from that to buy I Bonds when I can? It would be about 4% of my total net worth.
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