1. Lots of options but "should" is an ambiguous criterion for choosing....
The first rung consists of pre-ladder interest. I have two questions:
1) As interest accrues in the account, ultimately to become the first rung, how should we invest the funds over the next four years?
2) Does the TIPS ladder tool (tipsladder.com) make certain assumptions about pre-ladder interest being (or not being) indexed to inflation?
- save up enough coupons in money market fund until you can buy another TIPS issue.
- put coupons in a short term TIPS ETF like VTIP or STIP.
- spend coupons in current expenses if you don't need them for a future year's spending
2. No assumptions. What you do with coupons is up to you.
Statistics: Posted by sycamore — Wed May 22, 2024 8:21 pm