Author: rachel

An Introduction to Bond Ladders

An Introduction to Bond Ladders

rachel

Bonds play an important role in a diverse investment portfolio. As fixed-income securities, they can provide a stable return until they mature. As with any investment, bonds are subject to a certain amount of risk. Interest rate risk, for one, is the possibility that interest rates will rise after an investor buys bonds, causing them to miss out on potentially higher yields. To mitigate this risk, investors may opt to buy bonds with staggered maturity dates using a strategy called…
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The Sequence-of-Returns Risk in Retirement

The Sequence-of-Returns Risk in Retirement

rachel

Markets go up and down in ways that are not entirely predictable. For long-term investors, what the market is doing in the present isn’t that troubling; they’ve got a long time to ride out potential downturns. But for recent retirees, an ill-timed market downturn can have a negative impact on their nest egg, increasing the chances they’ll outlive their money. It’s a risk all investors face, and, fortunately, there are several things you can do to mitigate it. What is…
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