Bond Ladder

A bond ladder is an investment strategy that involves purchasing multiple bonds with staggered maturity dates. As each bond matures, the principal can be used for income needs or reinvested into new bonds. Bond ladders are often used by retirees as a way to generate a steady stream of income while reducing interest rate risk and ensuring that cash becomes available at regular intervals. As part of a retirement income strategy, a bond ladder can help investors avoid selling stocks during market downturns.

For more context, read The Sequence of Return Risk: A Retirement Red Zone.