To my mind, a TIPS ladder protects against future inflation and the longer your horizon is the more of a concern that might be. The problem with doing that now is that if you aren't able to hold the TIPS to maturity (e.g. one of you suddenly needs skilled nursing care), you may have to take a loss when you redeem them because of shifts in the market. As for an annuity, I'm not sure what the number is, but my understanding is that it is unlikely that anyone will allow you to put more than half (?) or so of your savings into one. I can definitely see putting maybe $200k into one to provide an automatic income stream that you don't have to worry about at all. Even though your SS and pension are covering expenses, I presume the pension is fixed and thus will continue to be eroded by inflation. Getting a small-ish annuity as a cushion might provide good peace of mind. Beyond that, it seems like you could be ideal candidates for a CCRC - perhaps with a type A or type B contract. I'd at least tour some CCRCs and see if they appeal to you at all. If so, you can then get a good idea of how much cash and ongoing income you would need for that option. If I were in your shoes, my primary focus wouldn't be preserving buying power, it would be ensuring that our basic needs will continue to be taken care of regardless of what may come.
Statistics: Posted by rustwood — Fri Apr 18, 2025 7:05 am — Replies 13 — Views 1143