How To Build A Bond Ladder — And The Best Brokers To Help You Do It

A bond ladder is an investment strategy that involves purchasing multiple bonds that mature at different times.

The ladder analogy is an apt visual tool to describe how bond ladders work: Each rung of the ladder represents a bond, with the lowest step occupied by whichever bond is due to mature the soonest. When that happens, money is freed up to spend, invest elsewhere or reinvest in a new bond to extend the ladder upward.

The biggest advantage a bond ladder has over investing in a single bond is that it allows investors to manage shifting market conditions and changing interest rates while maintaining a steady flow of income.

How to build a bond ladder

There are five main steps involved in…

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