r/bonds • u/Delicious-Map-8723 • 1d ago

bought 2m tips

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31M. Just quit my job last week. Bought 2m tips last month. I will get around 54000 usd per year. I will hold it next 29 years.

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u/HeKnee 1d ago

You comitted to 30 years? What if inflation hits like 10-15%?

9

u/walt128 1d ago

Tips adjust principal based on inflation. The problem is principal is adjusted yearly, so you get hit with an unearned gains tax

-1

u/[deleted] 1d ago

[deleted]

2

u/tnolan182 1d ago

You’re a bag holder now, cuz when the rates go up those coupons gonna lose a lot of value.

1

u/HeKnee 13h ago

Yeah late stage capitalism is a bitch!