What Is Laddering In Investing & Is It A Good Strategy For You? October 2024 Edition
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When you climb a ladder, you are careful and move methodically to make sure your footing is firm, while fixing your eye on the top rung. The same goes for an investment strategy called “laddering,” which is a slow-and-steady plan that creates some gains, while securing most of your funds over the long haul.
What Is Laddering?
Laddering is a way to manage individual fixed-income instruments, such as bond portfolios– whether they be corporate, Treasury or municipal bonds–CDs, structured note holdings and, in rare cases, fixed annuities. The Corporate Finance Institute defines laddering as: “an investment strategy that involves constructing a portfolio in which bonds or other fixed-income securities mature continuously…
