It seems to be a complex strategy that doesn't solve longevity risk. We have no idea how many rungs of the ladder are needed as we age. I think it may be more appropriate just to allocate a bucket of 60/40 assets at age 65 that is set aside with a promise to purchase 15 years later a 3% escalating SPIA at age 80 if still healthy to get longevity credits.The degree of precision in some of these strategies is startling -- especially in a crowd that normally goes for "good enough". That some of the same people are claiming their TIPS ladders are a simple strategy is even more puzzling.
BTW, that was an observation, not a critique -- do what works for you.
Statistics: Posted by 2pedals — Mon May 20, 2024 7:50 pm