Municipal Bond Forum
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.
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.
Start here.
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The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.