Bond ladder
Bonds maturing in successive years so some money comes due regularly.
Where it is explained in full
Money at every level: what changes as the numbers grow, from a first paycheck to a hundred million. The rules are the same for everyone and the useful ones change at every level. This page walks the whole ladder, what becomes possible at each rung, and the one line that runs through all of it. It explains; it never advises.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- bond fund
A pool of money collected from many investors that a fund company uses to buy a large number of different bonds at once. You own a small slice of that whole pool instead of one single bond.
- bondholder
A bondholder is the person or group that owns a bond, meaning they are the ones who lent money to a company or government. They receive interest payments and get their money back at the end of the loan period.
- corporate bond
A loan you give directly to a company instead of a government, and the company promises to pay you back with interest over a set period of time.
- I bond
A savings bond whose rate adjusts with inflation, bought from the Treasury.
- Junk bond
A bond rated below investment grade. Higher interest for higher risk of not being paid.
- ladder
A bond ladder is a strategy where you buy several bonds that each come due at different times so you always have some money becoming available soon and some growing for later. It helps you avoid being stuck at one interest rate forever.
- Municipal bond
A bond from a state or city, usually free of federal tax on its interest.
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