I don't think I have seen an analysis of the ranges of probable outcomes for the choices of pulling out a fraction of a portfolio to supply a known income in the same amount as eventual Social Security compared to simply spending from the portfolio at a higher withdrawal rate until SS starts and then at a lower withdrawal rate. The issue could turn on how much income is coming from SS as a fraction of overall income, on what fraction of the portfolio would have to be set aside to accomplish the ladder, and on what the price of the TIPS ladder would be depending on yield when the ladder was bought.
A person could experiment with this in a model like FireCalc.
Intuition would suggest that for some combinations of terms the ladder would be a good idea and for other combinations of terms perhaps not.
A person could experiment with this in a model like FireCalc.
Intuition would suggest that for some combinations of terms the ladder would be a good idea and for other combinations of terms perhaps not.
Statistics: Posted by dbr — Thu Dec 07, 2023 10:06 pm — Replies 9 — Views 639