Tips or intermdiate bonds

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Topic Author
renovator20
Posts: 32
Joined: Thu May 30, 2019 7:40 am
Location: Texas

Tips or intermdiate bonds

Post by renovator20 »

66yo retired and deferring SS until 70. Wife 66 retired getting SS. No pension or annuity.
I have moved 2 yrs of income to after tax account MM this year. (140K). No debt
Should I use TIPS for some or all of it? intermediate bonds? PFF stock for extra income?
We are 70% vanguard total stock market/30% total bond market with our pre tax retirement accounts around $2,500,000.
Everything else MM or cash.
Will buy new cars next year and will take the same disbursement in 2022-2028.
Where should I park cash? We will gift to family each year.
I am converting to pre tax IRA to roth up to top of 22% tax bracket each year until 72 y/o and understand IRMA costs.
Any ideas welcomed.
MishkaWorries
Posts: 991
Joined: Wed Aug 14, 2019 4:39 pm

Re: Tips or intermdiate bonds

Post by MishkaWorries »

renovator20 wrote: Thu Jun 10, 2021 7:15 pm 66yo retired and deferring SS until 70. Wife 66 retired getting SS. No pension or annuity.
I have moved 2 yrs of income to after tax account MM this year. (140K). No debt
Should I use TIPS for some or all of it? intermediate bonds? PFF stock for extra income?
We are 70% vanguard total stock market/30% total bond market with our pre tax retirement accounts around $2,500,000.
Everything else MM or cash.
Will buy new cars next year and will take the same disbursement in 2022-2028.
Where should I park cash? We will gift to family each year.
I am converting to pre tax IRA to roth up to top of 22% tax bracket each year until 72 y/o and understand IRMA costs.
Any ideas welcomed.
Two years may not be enough to fuss with buying bonds. But if you decide to buy bonds I'd suggest a blend of nominal and Tips. Nominal bonds will keep pace with expected inflation and Tips will outperform with unexpected inflation.

We're at 70% nominal and 30% Tips. All new bond money is going to Tips. If we reach 50%, I'll have to decide to stop there or keep increasing Tips.
We plan. G-d laughs.
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