Treasury Inflation Protected Securities(TIPS)
At current yields (as of 2024-11-15) a 30 year TIPS ladder can provide a a Safe Withdrawal Rate of 4.53%, and a real yield of 2.26%.
How to buy @ Fidelity
- Accounts and trade
- Trade
- Fixed income
- Select Bonds tab under search(2nd over from Yields).
- Just inside the Bonds tab in small print: Tips (secondary) or tips (auction)
- For secondary, put in the maturity date
- Then when the list pops up hit buy
More info at this bogleheads forum thread.
Laddering / Matching.
If you know you need $x/yr, a TIPS ladder is a perfect approach to meet those needs on a gauranteed basis. Let’s say you need $40k/yr.
So you would buy enough TIPS that every year, $40k matures, to guarantee your income. The math can be annoying, but https://www.tipsladder.com does the math for you. Or an excel spreadsheet is available here
More info on the idea here and specifically aroung using tips here.