Yes, a TIPS ladder like this is an indicated device for the object of "peace of mind." It is also not impractical.Suppose a person is currently age 55, and plans to start SS at age 70.
In your Fidelity Rollover IRA, you could purchase a 30-yr TIPS ladder (2025-2054), with each annual rung 'paying' you $x.
Also purchase a 15-yr TIPS ladder (2025-2039), with each annual rung 'paying' you $x.
Now you have $2x annual rungs until SS starts in 2039, and $x annual rungs for 15 more years after SS starts.
This setup might buy a person more peace of mind.
Considerations would be that TIPS are available for a good real yield (like 2%) at the time of purchase and that the total investment be in reasonable proportion to the overall plan. To put a very large fraction of one's assets in such a ladder would not be wise. Putting a very small fraction of one's assets would not be all that helpful, or rather not particularly necessary. Consideration has to be given to the fact that the income stream/asset will have completely evaporated by age 85.
Statistics: Posted by dbr — Fri Dec 06, 2024 9:54 am — Replies 40 — Views 2220