A stable retirement portfolio is something that we are all seeking and working to ensure. In this episode, I’ll share how bond laddering can be used as a strategy when investing to reduce risk and increase stability. You will get some quick and easy insight into what a bond is, the types of bonds out there, and how laddering can be used to reduce a variety of risks.
Listen in to hear about the inverse relationship between bonds and interest rates, as well as how that works into the laddering strategy. Listen in to learn the various reasons you may want to incorporate bond laddering and how it may specifically impact your retirement.
Listen to the Full Episode:
What You’ll Learn In Today’s Episode:
- What a bond is.
- How laddering can help reduce investment risk.
- The inverse relationship between bonds and interest rates.
- Why you might want to use a bond ladder in your portfolio.
- The two main things to pay attention to when it comes to bonds.
- The drawbacks to buying bonds.
Ideas Worth Sharing:
“When you buy a bond, you’re lending money to an issuer, and in exchange, the issuer agrees to pay you an interest rate and repay the value of that bond when it matures.” – Jonathan Bednar
“When I think of a bond, I think of the phrase, ‘loaner not an owner.’” – Jonathan Bednar
“Bonds and interest rates have an inverse relationship. As interest rates go up, bond values go down.” – Jonathan Bednar
Resources In Today’s Episode:
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