Thinking about bond as hedge against sequence of return risk. Does this seem prudent.
Short of it I have an inflation protected pension and am about 10 years from social security benefits. Once I have both (pension & SS) my bills are essentially paid for the rest of my life. My plan is to purchase a 10 yr treasury, at a minimum of 4.25%, with 40% of my portfolio and use the semi annual payments as income. The remaining 60% remains in the market to provide the additional income to cover the shortfall until SS comes in 10 years. I have setup a model with an 8% return with the following negative returns -35% the first year, -20% the 4th year and -10% the 7th year. Overall it equates to a "lost decade." With this model I will have about 2 years of stock equity remaining at the end of the 10 year period so it looks to fully fund my needs for the next 10 years (in a really bad market).
Does this seem like a viable plan or is the better option for parking the 40% for revenue for this time period?