How to Set Up a ‘Bond Ladder’ That Can Yield 4% to 5%

Bond ladders can be rickety at times. But they may provide protection against volatile interest rates and offer ways to capture higher yields as they hit the market.

The concept is straightforward: Assemble a portfolio of individual bonds or funds that mature at regular intervals and reinvest the principal in a new longer-term holding when the nearest-term bond matures.

Source: finance.yahoo.com