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Biotech / Medical : Biotech Valuation
CRSP 54.84+0.2%3:59 PM EST

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To: A.J. Mullen who wrote (31994)8/8/2009 12:03:28 AM
From: BulbaMan1 Recommendation  Read Replies (1) of 52153
 
>>>Paying tax as the principal accumulates seriously reduces the attraction of this instrument.
Ashley: I don't see this as much of a negative. True, with a regular bond you're able to use the interest you get to pay the taxes owed. But you'd be in pretty much the same situation if you simply sold a little of your TIPS holdings to pay
your taxes. Of course, the best place to hold TIPS is in an IRA or other non-taxable account.
Peace & good health,
Bulba
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