Tag Archives: TIPS

SWRs from 100% US TIPs portfolio update

Contrary to the overwhelming consensus at the beginning of the year, bonds have done remarkably well year to date. With that in mind I wanted to update the SWRs for the 100% US TIPs retirement portfolio I presented last year. With rates down, SWRs will be down as well but lets see by how much. The updated SWRs from a 100% US TIPs bond ladder are shown below. I also compare them to the SWRs from my previous analysis plus the SWRs from various risky portfolios. As the bottom table shows, the SWRs for a 100% US TIPs bond ladder … Continue reading

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Higher Safe Withdrawal Rates from a 100% Bond Portfolio?

Is it possible to achieve higher safe withdrawal rates, compared to a stock/bond portfolio, from a 100% bond portfolio? With bond prices at historical highs? That’s what I wanted to find out. I started thinking in this direction after my look at bottoms up retirement planning and calculating what low real rates are actually needed to achieve retirement success. This is mainly because what really kills SWRs in risky portfolios is negative withdrawals early in retirement and inflation as I discussed in my ‘Insist on 1966’ post. So I thought it would be useful to look at what the lowest … Continue reading

Posted in Bonds, Portfolio, Retirement | Tagged , , , | 5 Comments