Marc
Recycles dryer sheets
When I learned my finance, "ladders" of CDs, treasuries, and/or bonds was defined as:
Initially starting with multiple rungs (e.g., 13, 26, 39, and 52 weeks or 1, 2, 3, 4, and 5 years) of your preferred investment vehicle.
Then, as each matured, you would purchase investment of the longest rung on your ladder.
Then, after the end point of your initial ladder you would have a portfolio consisting of "only" multiples of the longest rung on your ladder maturing consistently to be reinvested at current rates but generating income all along the way.
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Now, I see people referring to ladders as continuously holding multiple investments of different maturities on their ladders permanently.
Was their a change of definition of a ladder?
thanks,
Marc
Initially starting with multiple rungs (e.g., 13, 26, 39, and 52 weeks or 1, 2, 3, 4, and 5 years) of your preferred investment vehicle.
Then, as each matured, you would purchase investment of the longest rung on your ladder.
Then, after the end point of your initial ladder you would have a portfolio consisting of "only" multiples of the longest rung on your ladder maturing consistently to be reinvested at current rates but generating income all along the way.
-------------
Now, I see people referring to ladders as continuously holding multiple investments of different maturities on their ladders permanently.
Was their a change of definition of a ladder?
thanks,
Marc
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