Bond Ladder Coach

Why use one

• Predictable income — known cash on known dates.
• Reduces interest-rate risk — some rungs renew at higher rates if rates rise.
• No need to time the market.
• Pairs with bucket strategy — bond ladder fills "Bucket 2" of the bucket retirement strategy.

Building one — easiest path

1. Decide how many years of expenses you want laddered (often 5-10).
2. Pick the type:
   • Treasury ladder — safest. Buy at TreasuryDirect.gov OR through your brokerage.
   • CD ladder — same idea with bank CDs.
   • I Bond ladder — inflation-adjusted, $10,000/yr/person max.
   • Corporate bond ladder — slightly higher yield, slightly more risk.
3. Buy roughly equal amounts maturing in years 1, 2, 3, 4, 5...
4. When year 1 matures, either spend or buy a new bond at the END of the ladder.

Where to buy

• Fidelity, Schwab, Vanguard — all have bond / CD ladder tools right in their platforms. Often most efficient.
• TreasuryDirect.gov — direct from the US government. No fees but a separate account.
• Your bank — for CD ladders. Usually higher rates online (Ally, Marcus).

Vs bond funds (BND, VBTLX, etc.)

• Bond funds — fluctuate daily, don\'t mature.
• Individual bonds — mature on a specific date, return par value.
• For retirees, individual bonds (laddered) provide more predictability.
• For most pre-retirees, bond funds are simpler.