Investing - Theory, News & General • Re: Regarding TIPS Ladder

To all…
Thank you for all the information and participation in this forum. I have a question about setting up say a thirty year TIPS ladder. What does one do with the coupon payments that come every 6 months? Is this supposed to be reinvested into the ladder for it to function properly? I’m a bit mystified by this so thanks for the answers!

In "real terms" they are part of the cash flow, just like the return of principal is. The way that most tips ladder builder tools work (like tipsladder.com) is that the cash flow in a given year is the return of principal + all coupons are, together.

For example, if it says you get $10K per year in cash flow in today's dollars, then the sum of return of principal + all coupons equals $10K.

You are, of course, free to do as you please with all of the distributions.

Cheers

Statistics: Posted by dcabler — Tue Aug 25, 2026 11:43 am