First, I realize that having any bonds in taxable is less than ideal, but I dont have space any tax advantaged space remaining and I dont want an asset allocation different than what I currently hold (60/40). I consider myself retired (lost my job in Sept, no real prospects so far). We thankfully have enough to not need to work but I'm trying to determine my best options for holding bonds in taxable and if there is any advantage to nominal over TIPS when it comes to taxation. I currently have ~1M in a 10yr nominal bond ladder with yearly rings. The plan is to use our dividends and interest from our other investments to pay bills first, then either use a maturing ring or sell off stocks if the market is high (like now).
However, I like the security of having a TIPS ladder that keeps up with inflation and pays our core bills annually when the markets get rougher so I dont need to pull from them. I can flip my current nominal ladder into a TIPS ladder and pay my core bills for 12-13yrs, which would be some nice added security without changing my asset mix. So is there a downside to this approach I am missing or does this seem like a reasonable idea?
However, I like the security of having a TIPS ladder that keeps up with inflation and pays our core bills annually when the markets get rougher so I dont need to pull from them. I can flip my current nominal ladder into a TIPS ladder and pay my core bills for 12-13yrs, which would be some nice added security without changing my asset mix. So is there a downside to this approach I am missing or does this seem like a reasonable idea?
Statistics: Posted by jjunk — Fri Nov 15, 2024 3:46 am — Replies 0 — Views 84