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Bond Ladders Fail Investors

Q

I chuckled when I read your article, “Today’s Market Especially Cruel to Bond Ladders.” I forgot this strategy even existed! The only thing certain about ladders is that they will reduce your net rate of return.

H.F., Ohio

A

James A. Klotz responds:

We’ve discussed the hazards of short-term bond ladders with clients for decades, yet write-ups by proponents of this strategy persist to this day.

By following this approach, inexperienced investors have missed out on a staggering amount of tax-free income.

Sep 17, 2019

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