Bond Ladder Portfolio

Staggered bond maturities for predictable income and interest rate protection.

Allocation Breakdown

4 Assets

1-3 Year Bonds

3-7 Year Bonds

7-10 Year Bonds

10-20 Year Bonds

Target Allocation

Asset Class	Weight	Example Ticker
1-3 Year Bonds	25%	SHY
3-7 Year Bonds	25%	IEI
7-10 Year Bonds	25%	IEF
10-20 Year Bonds	25%	TLH

Risk Level

Very Low

Rebalance Frequency

As bonds mature

Advantages

Predictable income stream
Natural interest rate hedging
Rolling maturity reduces reinvestment risk
Very low volatility

Disadvantages

Low growth potential
May not keep pace with inflation
Requires active management as bonds mature
100% bonds — no equity upside

About This Portfolio

The Bond Ladder Portfolio staggers bond maturities across different time horizons. As each "rung" matures, the proceeds can be reinvested at current rates. This provides predictable income and natural protection against interest rate changes.

Historical Context

Bond laddering is one of the oldest fixed-income strategies, used by institutional investors and pension funds for decades. It became more accessible to retail investors with the proliferation of bond ETFs targeting specific maturity ranges.

Who It's For

Conservative investors seeking predictable income with reduced interest rate risk. Ideal for retirees or those nearing retirement.

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