I would like to build a 15 year ladder that is self expiring and payes me $30,000 a year.
Any suggestions on building the ladder with TIPS or Treasury STRIPS? Not knowing what inflation would be during the 15 year period. I would use tipsladder.com to build the TIPS ladder or buy the STRIPS on the secondary market at Fidelity.
My adviser said TIPS ladder, but I would like to get other peoples suggestions and options.
Building a STRIPS or TIPS Ladder
byu/This_Call_9920 ininvesting
Posted by This_Call_9920
2 Comments
Without knowing the rest of the portfolio, risk, financial situation, age, etc, it’s pretty hard to give advice. I think the question is really, do you think inflation will go up or stay the same in the future and this gives you your answer. I vote that inflation will be higher in the future and throughout the duration of the treasury, so I would go for TIPS to retain buying power.
you buy as follows 1 yr, 2 yr, 3,4,5yr cds or bonds, when you renew the 1 yr buy a 5 yr, and the 2 yr will not be a 1 yr.