The 4% Rule (Actually 4.3%) with a TIPS Ladder — Oblivious Investor


I’ve been studying retirement planning for roughly 15 years now, and throughout that time a constant topic of debate has been whether a 4% inflation-adjusted spending rate over 30 years (i.e., “The 4% Rule”) is actually safe. And most of the time, that question is impossible to answer except in hindsight.

However, Allan Roth recently demonstrated that with TIPS yields being what they are right now, a TIPS ladder can very safely satisfy a 4.3% real spending rate, over 30-years.

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