Bond Ladder

Holding bonds with staggered maturities to manage rate and reinvestment risk.

A bond ladder spreads investments across bonds maturing at different dates. As each rung matures, the proceeds are reinvested at the long end, smoothing out interest rate swings and providing steady liquidity. It balances income, flexibility, and risk.

She built a bond ladder, with rungs maturing each year so cash came due on a steady schedule.