2024-03-07 12:49:12 ET
Summary
- Bond ladders with U.S. Treasury securities can provide a growing and ongoing income stream for retirement or life planning purposes.
- The iShares iBonds Dec 2024 Term Treasury ETF is a building block for creating such a bond ladder.
- Bond ladders allow investors to control risk to a degree and create a virtually perpetual income stream with new 'rungs' to meet future financial goals.
Fixed-income strategies for retirement or life planning purposes typically need to involve investment-grade securities such as government bonds or high-quality corporate bonds. The obvious reason is that you want to control risk to the extent possible, while also having a good amount of visibility into your total returns. Within this basket, government bonds are often considered to be the least risky, but the returns may be subdued compared to higher-yielding securities that also add a modicum of credit exposure....
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For further details see:
IBTE: Bond Laddering - ETF Style