**Magellan**has an elegant, simple-to-use spreadsheet for estimating the cost of building a TIPS ladder. (See 1 below to download.) He used the spreadsheet in this post. In the same thread I criticized it for overstating the cost of the ladder. (See this post in the same thread.) My criticism was prompted by comparing magellan's results to those from my own TIPS ladder spreadsheet. (See 2 below to download.) It turns out

*the error was in my spreadsheet, not his*. I've since corrected my own, and now their results are pretty close. For a 30-year ladder that provides an annual $30,000 real withdrawal, his spreadsheet estimates a cost of $847,000; while mine estimates $839,000.

Magellan's sheet needs 5 interest rates for its computation. Here are today's:

Code: Select all

```
1 Yr 5 Yr 7 Yr 10 Yr 30 Yr
------ ------ ------ ------ -----
-1.70% -0.98% -0.53% -0.09% 0.93%
```

Besides the corrections, I've added some more discussion to the workbook since I first introduced it April 2011 in this post: Re: Grok's Tip #8:Retire Worry-Free with TIPs as a foundation. I welcome any bug reports, suggestions, or comments. In a private message magellan said he liked the idea of a thread to discuss TIPS ladder spreadsheets in general, and our two in particular. So, I'm sure he'd also welcome responses about his.

As a first suggestion, magellan, consider adding a 20 Yr rate. Even though the Treasury no longer issues 20-year TIPS, it still publishes a rate for it. (3)

(1) Click for page to download magellan's file from: Flexible Retirement Planner - Additional Tools

(2) Click for page to download my file from: TIPS Ladder Builder 11/9/2012

(3) Daily Treasury Real Yield Curve Rates

Edit 11/11/2012: File updated for current prices. Because of lower real yields it now costs about $915,000 to build a 30 year X $30,000 ladder.