Thanks so much for all the great information on TIPS ladders, much appreciated by this first time poster. I think there is something incredibly basic that I am not understanding. Went onto tipsladder.com (thank you to person who created it) and put in the following parameters:
1) bond maturing nearest to start rung of year
2) best yield
3) did not check box for excluding pre-ladder interest
4) Income requirement kind, average
5)first and last years were 2030 and 2054
6) desired annual real income: 50k
Result says for about $877k, there will be an annual income of 50k give or take. So here's the question (which I suspect is fairly ignorant), where is the inflation protection? 50k in income in 2030 will be worth a lot more than 50k of income 2054. What am I not understanding??
Followup question: would it be prudent to invest 50% of IRA investments in a tips ladder to provide the income needed to fill the gap between SS/pensions/annuity and annual anticipated spending needs. IRA investments represent 2/3 of total investments, and we are in our early 60s.
Thanks![:happy]( "smile")
1) bond maturing nearest to start rung of year
2) best yield
3) did not check box for excluding pre-ladder interest
4) Income requirement kind, average
5)first and last years were 2030 and 2054
6) desired annual real income: 50k
Result says for about $877k, there will be an annual income of 50k give or take. So here's the question (which I suspect is fairly ignorant), where is the inflation protection? 50k in income in 2030 will be worth a lot more than 50k of income 2054. What am I not understanding??
Followup question: would it be prudent to invest 50% of IRA investments in a tips ladder to provide the income needed to fill the gap between SS/pensions/annuity and annual anticipated spending needs. IRA investments represent 2/3 of total investments, and we are in our early 60s.
Thanks
Statistics: Posted by mamma bear — Wed Jun 12, 2024 4:29 pm — Replies 5 — Views 318