Pre-tax portfolio question
I retired about a year ago at 67. I ended up in a better financial position than anticipated because of employer equity that has now been liquidated. My assets are roughly 45% pre-tax and 55% taxable with a fraction in Roth. I do plan a series of Roth conversions over the next few years prior to SS and RMD. The taxable accounts are primarily invested in VT.
My dw and my pre-tax assets are all at Fidelity. My goal is to create a safe, low-maintenance portfolio in case something happens to me (she is not a DIY'r). 100% of our retirement assets are in Fidelity Target Date 2025. It's not perfect, but it's also not a terrible choice. It's currently close to a 50/50 mix and will transition to 20/80 within a decade or so.
I am planning to create an iShares ladder using their Yield to Maturity Corporate Bond ETFs with some of the Target date assets. I will use this ladder, plus social security to cover our essential expenses until our late 70's, at which point the Target Date fund will basically be an income fund. My understanding is that if we hold these investments to maturity, these will produce the stated yield, eliminating capital losses.
I don't see much downside to this approach other than the obvious inflation risk. The yields are mid-4% (shorter) to low 5% (longer). I have read about others doing similar things, but thought I would float the idea for feedback comment. Am I missing something important?