Saturday, March 20, 2010

Investment Choice

As noted in the previous post I have signed up for a savings plan at my new job. I am putting the money into an inflation indexed bond fund. It seems to me that the ongoing large budget deficits create an inflation risk which is worth hedging against. And the alternative choices aren't all that appealing.
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2 comments:

  1. AnonymousMarch 25, 2010 at 9:54 AM

    I wonder whether my asking you awhile back whether the annuity option on your old pension was inflation-indexed influenced your decision at all.

    (OTOH, I get the impression from casual readings in cognitive psychology that you might well be out of the loop on this yourself:-)

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  2. James B. ShearerMarch 26, 2010 at 10:21 PM

    Probably not too much. Just before leaving IBM I changed my investment choice for new deductions in my 401k there to a similar inflation indexed bond fund (from an international index fund). So I had been thinking that way for some time.

    Actually just changing the allocation of new money will only slowly change my overall position. During the past year I have vaguely considered shifting some of my existing 401k money as well but as usual in my case inertial prevailed.

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