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.
Thanks for reading!
New to Investing? See My Related Book:
Investing Made Simple: Investing in Index Funds Explained in 100 Pages or Less
Topics Covered in the Book:
- Asset Allocation: Why it’s so important, and how to determine your own,
- How to to pick winning mutual funds,
- Roth IRA vs. traditional IRA vs. 401(k),
- Click here to see the full list.
“A wonderful book that tells its readers, with simple logical explanations, our Boglehead Philosophy for successful investing.”
– Taylor Larimore, author of The Bogleheads’ Guide to Investing
November 7, 2022