DALLAS, TX, August 06, 2011 (Press-News.org) Interest rate changes will affect you less with a bond ladder. Here's why:
- If interest rates go down over the next few years, you will already have locked in higher rates--and the current market value of your fixed income portfolio will be rising.
- If interest rates stay the same, you will be earning longer term yields, so your return should exceed what you would be earning if you left your investment short term.
- If interest rates go up, the current market value of your fixed income portfolio will be falling. However, as each rung on the ladder matures, you will have money to invest at higher rates.
We started QuadCap Wealth Management, LLC to focus on a highly personalized comprehensive counseling program that is driven by dedicated personal service. Our firm provides in depth comprehensive financial counseling that covers all areas of your financial affairs, such as employee benefits planning, tax planning and preparation, asset allocation strategies, estate planning and wealth transfer strategies, as well as risk mitigation strategies.
Website: http://www.quadcapwm.com
David Blair, QuadCap Wealth Management, and Bond Ladders IV
David Blair and QuadCap Wealth Management explain the benefits of Bond Ladders (Fourth Part).
2011-08-06
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Why Use a Ladder?
It's a Strategy for All Interest Rate Environments. Since a bond ladder enables you to reinvest your assets periodically over time, your portfolio will be less affected by interest rate volatility. This concept is similar to dollar cost averaging in stocks. As bonds come due, you are able to reinvest your principal into bonds of intermediate or longer term maturities, where the yields are higher.We started QuadCap Wealth Management, LLC to focus on a highly personalized comprehensive counseling program that is driven by dedicated personal service. ...
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[Press-News.org] David Blair, QuadCap Wealth Management, and Bond Ladders IVDavid Blair and QuadCap Wealth Management explain the benefits of Bond Ladders (Fourth Part).