Follow the steps below to create a TIPS Ladder in your plan.
1 Create an account to hold the TIPS
STEP 1: Head on over to My Plan > Assets and Debts
STEP 2: Press "Add an Account" and select Traditional IRA
STEP 3: Give the account a descriptive name, "TIPS Ladder"
STEP 4: Set the balance to $0
STEP 5: Set the rate of return to reflect your TIPS ladder's expected real yield to maturity. This can be 0% if you want to model no real return above inflation, or a higher rate if your ladder was purchased at a positive real yield.
2 Method 1: If you are considering using this strategy...
Add a Transfer FROM your IRA Account TO the TIPS account
This will represent the purchase of the TIPS, the outflow from the more volatile risk portfolio in the IRA into the stable/guaranteed TIPS Ladder Account. With your chosen rate of return, it will also represent the return of the face value of the bond at maturity date. Although the principal will be returned annually as each "rung" of the ladder matures, this is the simplest way to account for your strategy in the Boldin platform.
Method 2: If you are implementing this strategy...
Because transfers will not impact balances after the month they are entered, you may want to use this method.
STEP 1: Reduce the IRA by the amount of the purchase
STEP 2: Increase the TIPS account by the amount of the purchase
This achieves the same result as Method 1, adjusting the account balances directly rather than through a transfer. As above, the rate of return you set determines both the ladder's growth and the return of face value at each rung's maturity.
3 Add a Pension to represent the annual interest income
This will represent the interest income for the duration of the ladder.