It may not seem like a big deal to have such a USD 10,000 30 - year
TIPS laddered portfolio available for retirement income when one is ready to retire.
For Alice, having a 30 - year
TIPS laddered portfolio of USD 10,000 real income each year would be a nice supplement to her other sources of income from Social Security benefits and defined - contribution retirement savings.
Not exact matches
Both funds invest in a
laddered portfolio of Treasury Inflation - Protected Securities (
TIPS) and are designed to provide monthly inflation - adjusted distributions through their respective maturity dates (2019 and 2029).
[I use the letter P in honor of Peteyperson, a prominent participant of several discussion boards, who has drawn our attention to
TIPS Ladders and how they can help us in the practical aspects of putting a
portfolio together.]
A
TIPS Ladder allows you to avoid selling stocks at distressed prices, which is what causes retirement
portfolios to fail.
I have extracted this from my
TIPS Ladder Survey: We need to change our statement about what kills retirement
portfolios.
In addition, if the
TIPS securities were held to maturity, as would be the case for a
laddered portfolio, then there shouldn't be any risk.
Ten - year
TIPS (and / or I - Bonds)
ladders held to maturity make a lot of sense in an actual
portfolio these days.
Your
TIPS Ladder does not have to protect your
portfolio for anywhere near a decade.
At least 2.5 % of the
portfolio matures each year from the 10 - year
TIPS ladder.