Benefits Of A Laddered Portfolio


  • – Diversified portfolio of bonds
  • – Monthly cash flow
  • – Short term bonds for risk aversion
  • – Long-Term bonds for income
  • – Security and diversification
  • – Buy maximum yield available
  • – No management fees


What Is A Laddered Portfolio?


A structured laddered bond portfolio can contain fixed-income and sometimes tax-free securities which strategically have different maturity dates. The premise behind purchasing several smaller bonds with varying maturity dates over purchasing one or two large bonds with a couple of maturity dates is to minimize risk due to interest-rate fluctuation and add liquidity.

Bonds within a laddered portfolio provide maturity dates that are evenly-spaced over a number of months or years so the bonds ideally mature at regular intervals. As a result, interest payments (a.k.a. “coupons”) may provide a steady fixed income and perpetual reinvestment helps to curb interest-rate risk.