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As one approaches the retirement age, a steady stream of monthly income is often a critical factor in making investment choices. The next biggest consideration would be risk, which needs to be kept at a minimal level. One way to do
LDDR: An Interesting 'Ladder Of Ladders' Idea For Retirement Planning
Summary
- For retirees seeking predictable monthly income with minimal risk, LifeX 2035 Term Income ETF offers a solution to uneven bond ladder distributions.
- LDDR provides a steady $8,333 monthly income per $100,000 investment, though part of this comes from the principal, not just interest.
- To extend income beyond 2035, consider a 'ladder of ladders' using multiple LifeX ETFs maturing at different dates, reinvesting part of the income.
- Main risks include credit risk due to economic factors and interest rate risk, but LDDR remains a Buy for predictable income.
A freight forwarding professional with over 20 years in the industry, I am an enthusiastic market participant with a flair for picking gems from the general rubble. My industry experience has given me insights into human behavior, investment psychology, and the need to make money work for you instead of against you. My ideas on investing are often contrarian, and the level of due diligence I apply to each of my research projects give my audience the right information at the right time.
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