Build a TIPS ladder sized to deliver a target annual real income using the Federal Reserve Board's smoothed TIPS real yield curve (Gürkaynak–Sack–Wright). One rung matures each year, starting two calendar years from now (the curve's shortest published maturity), for the chosen horizon. Maturing principal plus coupons received that year add up to your target real income (in today's dollars).

Inputs

  • Annual Real Income ($) — desired purchasing power, in today's dollars
  • Number of Rungs — number of years of inflation-protected income (up to 19); one rung matures each year, starting two calendar years from now
  • click GO to compute

Charts

  • Real Curve with Rungs — the Federal Reserve smoothed real yield curve with each rung marked
  • Real Income Schedule — coupon income vs. maturing principal each year

Results

  • Summary card — total indicative cost, number of rungs, weighted-average real yield, horizon
  • Ladder table — one row per rung:
    • Year — calendar year the rung matures
    • Maturity — years from today
    • Real Yield (%) — real yield interpolated to that maturity from the Federal Reserve smoothed TIPS curve
    • Face Value — notional to invest at this tenor so that principal + coupons deliver the target real income that year
    • Annual Coupon — face × real yield, paid throughout the rung's life
  • Income schedule table — calendar-year breakdown of coupons received plus principal returned, in real dollars

Use Cases

  • construct an inflation-protected income stream for retirement
  • estimate what it would cost today to lock in a desired real income for a fixed window
  • compare real yields across maturities at a glance

Assumptions

  • real yields interpolated via PCHIP from the Federal Reserve Board's smoothed TIPS curve (Gürkaynak–Sack–Wright, dataset feds200805)
  • indicative cost treats each rung as priced at par (real coupon = real yield); live CUSIPs trade at premiums or discounts to par
  • maturities round to whole years; rung matures at year-end of the calendar year shown
  • reinvestment of coupons is not modeled — coupons are treated as income in the year received

Disclosure

Real yields shown are interpolated from the Federal Reserve Board's smoothed TIPS TIPS curve. For tradeable CUSIPs and current ask prices, see TreasuryDirect or your broker. The indicative cost is a planning estimate, not a quote.

Per-ladder pages (e.g. /tips-ladder/10-year) show pre-computed configurations at the latest curve.