TD AMERITRADE

Bond ladders

Building a laddered portfolio involves buying an assortment of bonds that mature at regular intervals. For example, you might invest equal amounts in securities maturing in one, two and three years. After one year, when the first bonds mature, you would reinvest the money in a three year maturity, maintaining the ladder. Your return would be higher than if you bought only short-term issues, and your risk would be less than if you bought only long-term issues.

This strategy is designed to decrease the overall risk of your fixed income portfolio. Because the portfolio is diversified with respect to maturity dates, it can help provide protection against interest rate changes. And depending on the bonds in your ladder, income payments could be scheduled in monthly, quarterly or semi-annual intervals, potentially helping to provide a reliable income stream.

Get started with the Bond Wizard

We can help you:

Select a ready-made bond ladder — a simple and convenient way to get started.
Build your own bond ladder based on your specific needs and criteria... then purchase the bonds with one click.
Add to the investments in your current portfolio with easy to use tools for finding individual bonds and CDs.

Helpful Scenerios

	Planning for Retirement

	Save for College

	High Tax Bracket

Non-deposit investment products NOT FDIC-INSURED/NO BANK GUARANTEE/MAY LOSE VALUE. Subject to availability and change in price. Availability of products and services may vary by jurisdiction.

Investments in fixed income products are subject to market risk, interest rate risk, credit risk and special tax liabilities. Learn more about these types of risk.

Bond Ladder User Agreement

Reliable income is subject to the credit risk of the issuer of the bond. If an issuer defaults, no future income payments will be made.

While the Bond Ladder tool may assist you in obtaining diversification of your own individual portfolio, its use does not ensure diversification. Keep in mind that diversification does not guarantee against loss. TD AMERITRADE is not responsible for ensuring that your use of the Bond Ladder tool is suitable for your specific financial situation.

You may want to consult an attorney or tax professional regarding the bonds you select for your portfolio prior to purchasing them. You must perform your own evaluation of whether the securities held in your portfolio are consistent with your investment objectives, risk tolerance and financial situation.