Clients with US government pensions are protected from inflation, a major concern for advisors. Social Security benefits can be seen as a lifetime inflation-adjusted annuity, with delaying payments resulting in higher inflation-protected income. TIPS, Treasury inflation-protected securities, offer a 30-year inflation-adjusted cash flow, providing stability during market fluctuations.

A self-liquidating TIPS ladder ETF has been introduced by LifeX, offering monthly paychecks and stability in distributions. These funds fill gap years, require no action from the investor, and allow for flexible investment amounts. With a relatively low expense ratio, these ETFs provide a predictable inflation-adjusted cash flow for up to 40 years.

Inflation-adjusted options like TIPS ladders and ETFs can help savers feel comfortable spending their accumulated wealth. These options offer predictable monthly payments, similar to a traditional paycheck, providing a psychological benefit and simplicity in managing finances. The 0.25% annual expense ratio may be worth the peace of mind and convenience these options offer.

Read more at Yahoo Finance: 3 Ways to Build an Inflation-Adjusted Pension. Yes, There’s Even an ETF for That