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The Short Answer

The High and Low Points of the Bond Ladder

Given ultralow yields, the benefits of laddering outweigh the risks right now.

Mentioned:

Question: In your article about the risks of individual bonds, you noted that one drawback is that you won't be able to take advantage of higher yields when they become available. But wouldn't a bond-laddering strategy help overcome that drawback?

Answer: We covered a lot of ground in our Better Bond Investing week, but we didn't discuss bond laddering, which, as you noted, can help mitigate some of the risks of investing in individual bonds.

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Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.