- Growing up, my grandparents talked about how they would buy a series of 5-year CDs, with one maturing every six months over the coming 60 months.
- With 5-year CDs currently offering .5%, not 5+% as before 2008, finding other assets to ladder with became critical, even though that meant taking on more risks to beat inflation.
- This article will list the Target Term CEFs, Term Preferreds, and Baby Bonds I chose to build a ladder with, stretching into 2028. Building the ladder today would earn less.
- One big concern in today’s low interest rate environment is having your assets called. Three “steps” of my ladder need to be rebuilt as the underlying asset was indeed called.
For further details see:
Dissecting The Assets I Use To Build A Fixed Income Ladder