What I posted was not about running a simulated ladder. What I posted was about inflation-linked distributing ladder ETFs, such as the ones of Northern Trust that have discussed in this topic. Those ETFs run an actual ladder.With investors in an inflation-linked distributing ladder fund who do not reinvest the portion of distributions that comes from inflation adjustments, the future distributions that come from the maturity proceeds of TIPS also will not grow with inflation.
I note if you follow the basic "rules" of running a simulated fixed ladder, you will de facto take care of this problem.
Those basic rules including withdrawing in each period what the target TIPS ladder would have produced, and maintaining duration tracking.
Shares of the fund would not be sold for planned withdrawals. A portion of the distributions would need to be reinvested to have later distributions of maturity amounts of TIPS held by the fund grow with inflation.
Statistics: Posted by FactualFran — Sun Nov 16, 2025 11:39 pm — Replies 44 — Views 3218