[Title edited for clarity - moderator oldcomputerguy]
I'm a bit confused about the appropriate use of ladders and would appreciate some basic guidance please.
I retired in Feb at age 62 with a pension that covers about half our expenses. I'm working part time but want to supplement this until taking SS at 67. We have a 401(k) available (that we'll eventually roll into Roth and traditions IRAs) but I'd rather not start taking distributions till 67.
My understanding is a 4 or 5 year ladder (TIPS, CD's, bonds, whatever) would be a good tool to provide reliable cash but all I find when researching ladders is reinvesting the maturing rung.
Is limited term cash needs a legit use of a ladder or would we be better off taking IRA distributions? We have some cash in a MM account to partially fund it, but the reality is we'd need to convert an amount from an IRA to fully fund it (likely instead of Roth conversions).
This brings up at least one other question. Rob Berger discussed TIPs ladders in the video linked below. In that video he mentioned that TIPS ladders should be opened in tax advantaged accounts. He explained the tax implications but I though tax advantaged accounts (which I equate to IRAs) are essentially volatile by definition. So how do you build predictable cash flow in the form of ladders and take distributions from such accounts?
https://www.google.com/url?sa=t&source= ... FMj9jnfAUq
Thank you,
Allan
I'm a bit confused about the appropriate use of ladders and would appreciate some basic guidance please.
I retired in Feb at age 62 with a pension that covers about half our expenses. I'm working part time but want to supplement this until taking SS at 67. We have a 401(k) available (that we'll eventually roll into Roth and traditions IRAs) but I'd rather not start taking distributions till 67.
My understanding is a 4 or 5 year ladder (TIPS, CD's, bonds, whatever) would be a good tool to provide reliable cash but all I find when researching ladders is reinvesting the maturing rung.
Is limited term cash needs a legit use of a ladder or would we be better off taking IRA distributions? We have some cash in a MM account to partially fund it, but the reality is we'd need to convert an amount from an IRA to fully fund it (likely instead of Roth conversions).
This brings up at least one other question. Rob Berger discussed TIPs ladders in the video linked below. In that video he mentioned that TIPS ladders should be opened in tax advantaged accounts. He explained the tax implications but I though tax advantaged accounts (which I equate to IRAs) are essentially volatile by definition. So how do you build predictable cash flow in the form of ladders and take distributions from such accounts?
https://www.google.com/url?sa=t&source= ... FMj9jnfAUq
Thank you,
Allan
Statistics: Posted by FutureProofing — Mon May 20, 2024 3:37 pm — Replies 3 — Views 195