Bond Ladder Builder
Bridge bucket CD/T-Bill ladder · I-Bond strategy · 5-year income coverage plan
📌 Bridge Bucket Strategy: Years 4–8 of retirement covered by laddered CDs/T-Bills/I-Bonds. Each rung matures to fund one year of expenses — no forced selling of equities in down markets. I-Bonds ($20k/yr) provide tax-deferred, ACA-friendly income.
Your Bridge Bucket Ladder
Rung Detail
| Maturity Year |
Purpose Year |
Age (Scott) |
Expense Target |
I-Bond Portion |
CD / T-Bill Portion |
Total Invested |
Maturity Value |
ACA MAGI Impact |
Instrument |
| TOTAL |
— |
— |
— |
|
I-Bond Accumulation Plan (Start Immediately)
| Year | Buy Amount | Cumulative Held | Est. Value at Retirement (2028) | Redeem Year | MAGI Impact |
|---|
💡 Start buying I-Bonds NOW (2026–2028) at $20k/yr. Hold through retirement — interest deferred, MAGI-neutral. Redeem one rung per year during years with lowest MAGI (e.g., before SS starts in 2056).
Instrument Comparison for Bridge Bucket
| Instrument | Rate | ACA MAGI | Liquidity | State Tax | Limit | Best For |
|---|
| I-Bonds | 4.5% | Deferred | After 1yr hold | Exempt | $10k/person/yr | Most ACA-friendly rung |
| Brokered CD | 4.8% | Annual interest | Secondary market | Taxable | $250k FDIC | Core ladder rungs |
| T-Bills (6mo) | 4.6% | At maturity | Excellent | Exempt | Unlimited | Short rungs, state-exempt |
| T-Notes (2yr) | 4.5% | Semi-annual | Good | Exempt | Unlimited | Mid-term rungs |
| TIPS (2yr) | Real+2% | Annual (phantom) | Good | Exempt | Unlimited | Inflation protection |
| Muni Bond | 3.5% | ACA add-back! | Secondary market | Often exempt | Unlimited | NOT recommended at 12% bracket |
| Money Market | 4.3% | Annual | Daily | Taxable | Unlimited | Cash bucket overflow |