tag:blogger.com,1999:blog-6616959642391988608.post4487145414300423633..comments2024-03-18T13:22:06.536-07:00Comments on Calafia Beach Pundit: TIPS get a whiff of inflation concernsScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-6616959642391988608.post-65613879081755680042009-11-14T01:36:19.910-08:002009-11-14T01:36:19.910-08:00Great Information, and well worth reading.
Thanks...Great Information, and well worth reading. <br />Thanks!! I'll be back to see more.Unknownhttps://www.blogger.com/profile/15294712402224248650noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72167783385508342452009-11-05T10:31:49.927-08:002009-11-05T10:31:49.927-08:00Thank you very much.
BikeThank you very much.<br /><br />BikeBikehttps://www.blogger.com/profile/05653847377109965561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-83980499725843310932009-11-05T10:02:05.560-08:002009-11-05T10:02:05.560-08:00Bike: see my recent post for an answer to your que...Bike: see my recent post for an answer to your question.<br /><br />CFP: more good comments, thanksScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-47851072280206947212009-11-05T09:44:27.416-08:002009-11-05T09:44:27.416-08:00Scott,
Agreed that leveraged real estate can be r...Scott,<br /><br />Agreed that leveraged real estate can be risky. However, I think that risk is mitigated when you use your own house, where you expect to live for at least 7+ years. It's definitely a long-term strategy.CFP, EAhttps://www.blogger.com/profile/01745165113059985912noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-15392965242776059142009-11-05T09:37:34.600-08:002009-11-05T09:37:34.600-08:00Wow. Can't believe that I left out the most im...Wow. Can't believe that I left out the most important part of that strategy. Always use a 30-year fixed mortgage. It's God's gift to the middle and uppper-middle class. Don't throw it away for an ARM.<br /><br />The 30-fixed is almost - if not completely - nonexistent in the rest of the world where ARMs are the only loans available. And for good reason. Why would a bank want to CFP, EAhttps://www.blogger.com/profile/01745165113059985912noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-56098974531330077682009-11-05T05:10:01.201-08:002009-11-05T05:10:01.201-08:00CFP and Scott - thank you very much for your insig...CFP and Scott - thank you very much for your insights.<br /><br />My situation w/regard to housing may be atypical. I rent ($520/month), do not own a house/real estate, do not want to buy/own where I am currently located, and know that in at most - 8 years, I will be moving at least half-way across the country (Illinois), if not all the way across to Washington State.<br /><br />Hence, I have noBikehttps://www.blogger.com/profile/05653847377109965561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-38811593913469023272009-11-04T13:19:37.047-08:002009-11-04T13:19:37.047-08:00Bike: CFP makes some good points. Now is the time ...Bike: CFP makes some good points. Now is the time to be increasing your leverage generally (using fixed rate debt, not adjustable), rather than decreasing, and increasing your exposure to any tangible assets which have suffered sharp price declines (e.g., housing) rather than decreasing. <br /><br />Leveraged exposure to real estate should be a good thing in a rising inflation environment, but itScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-82061015825306238392009-11-04T12:57:56.077-08:002009-11-04T12:57:56.077-08:00Bike,
Don't know Scott's feelings on buyi...Bike,<br /><br />Don't know Scott's feelings on buying TIPs at current prices. But for inflation protection, the first thing that I'd look at is your mortgage.<br /><br />If you have decent-sized mortgage, refinance to take advantage of the low rates. That will protect a sizable part of your budget from inflation.<br /><br />If your mortage is very low relative to your income (less ofCFP, EAhttps://www.blogger.com/profile/01745165113059985912noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-26961992868652599152009-11-04T09:43:37.337-08:002009-11-04T09:43:37.337-08:00Scott - given your thinking concerning inflation -...Scott - given your thinking concerning inflation - if an investor did NOT have any TIPS exposure (at this time) - would you advise taking a position in TIP/WIP/VIPSX/etc., now?<br /><br />Thank youBikehttps://www.blogger.com/profile/05653847377109965561noreply@blogger.com