# TIPS Ladder

Source: https://www.yieldcurve.pro/tips-ladder

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](https://www.treasurydirect.gov/) 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.