Bonds are a low-risk investment that can create predictable and steady income. That said, they carry risk like every investment, especially when interest rates rise and the value of bonds decreases. Bond ladders are a way to manage risk and secure a steady flow of income. What is a Bond Ladder? A bond ladder is a strategy that helps investors use bonds to create a consistent stream of income and manage risk. This is done by purchasing bonds that mature at different dates. Since the maturity dates are staggered or ‘laddered’, investors can plan frequent income and hedge against fluctuating interest rates, which often affect the price of bonds. This strategy is ideal for people who want another source of income in retirement or need predictable income. How Bond Strategies Work To create a bond strategy, investors buy bonds that mature at different dates. However, they also need to consider factors like your timeline and how often they want income be it monthly, bi-monthly, or annually as that’ll determine the maturity dates of the bonds they choose. For instance, if an investor has $10,000 to