Core Insights - The article discusses the shift in investment strategy for individuals approaching retirement, focusing on decumulation rather than accumulation [1] - Bond Ladder ETFs are presented as a viable alternative for generating retirement income, offering a structured and transparent approach to wealth distribution [1] Group 1: Retirement Income Strategies - Investors traditionally aim to accumulate wealth, but as they near retirement, the focus shifts to distributing that wealth in a liquid and transparent manner [1] - Older clients often seek low-risk investment products, such as money market funds, but these face challenges like shifting interest rates and reinvestment risk [1] Group 2: Bond Ladder ETFs - Bond Ladder ETFs provide a structured means to decumulate wealth through a laddered portfolio, primarily invested in municipal bonds or Treasury Inflation-Protected Securities (TIPS) [1] - The Northern Trust 2045 Inflation-Linked Distributing Ladder ETF (TIPC) exemplifies this approach, aiming to generate consistent income over a 20-year period by separating its portfolio into 20 rungs, each corresponding to a specific calendar year [1] - TIPC's construction allows for even weighting across its portfolio, which helps investors access a consistent path to long-term, inflation-linked income and annual principal distributions as bonds mature [1] Group 3: Investment Benefits - This strategy is particularly beneficial for older investors who rely on their portfolios for lifestyle expenses, as it helps mitigate inflation risk while generating steady income [1]