You could build
a TIPS bond ladder to cover your income to age 70 or so and then purchase a fixed annuity.
A ten year
TIPS bond ladder makes sense, where you reinvest excess cash back into new TIPS at the ten year maturity.
As I have discussed in recent blogs,
TIPS bond ladders are relatively free of interest rate risk if we hold individual bonds to maturity.
Not exact matches
For current interest rate, visit the
bond area of the Bloomberg site: Bloomberg Interest Rates In terms of actually implementing
TIPS baselines,
TIPS Ladders are attractive inside of tax sheltered accounts.
An advantage of a
TIPS Ladder is that you hold all of your
bonds to maturity, which avoids the expenses and the possibility of loss when selling on the secondary market.
The inflation adjusted principal of a 10 - Year
bond or preferred stock matches the buying power of a 3 %
TIPS ladder.
Ten - year
TIPS (and / or I -
Bonds)
ladders held to maturity make a lot of sense in an actual portfolio these days.
; Annuities and
TIPS; Worth Repeating; Investing Research and the Tricky Tricks Used to Trick You; What Ifs; Risk Leads to Bankruptcy; FIRECALC Sinks; Putting Everything on Automatic; Dividend Growth and
Bond Ladders; The Great Mistake; Dividend Blend Calculator; Dividend Growth and
Bond Ladders Addendum; Dividend Growth Rule of Thumb; Dividend Growth Story; Latest Letter to the Editor, Free Lunches for Everyone.
I
Bonds versus
TIPS TIPS Ladders for Today opens up more opportunities.
Given the limited number of
bond terms, and therefore difficulty setting up a
bond ladder with such
bonds, many use a
TIPS fund rather than buy individual securities, but diversification of
TIPS is not required either if you do not need staggered maturities (a
bond ladder).
You can create a
TIPS ladder by buying individual
bonds at TreasuryDirect.gov.
I have standardized on using I -
Bonds with my
TIPS Ladder Calculators.