Use a Bond Ladder to Generate Income in Retirement

Retirees seeking to maximize income in retirement can use a "bond ladder" to generate income timed with their spending needs. Expert Amy Shepard explains how this works.
DISCLOSURES
This presentation contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should be construed as a solicitation to buy or sell any security or as an offer to provide investment advice.
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Any charts in the presentation are not meant to show the performance of SM strategies or to imply the performance of any model portfolios. Any charts or examples are meant to show the Firm’s belief in sticking to a plan over time, but there is no guarantee that you will have the same or positive results. Any results portrayed in these cases or examples are not representative of all of SM’s clients or the clients’ experiences.
No portion of this presentation should be interpreted as a testimonial or endorsement of SM’s investment advisory services. Past performance is not a guarantee of future results. When investing, depending on your timing, you could lose money. There is no guarantee that the prevailing market and economic conditions during the time frames in the graphs will continue, and performance may be negatively impacted by a shift in such conditions. This presentation contains general information that is not suitable for everyone and was prepared for informational purposes only.

[@chesshead3943]

Great explanation thanks!

[@katiewoodfield7768]

Thank you. You’ve confirmed our retirement strategy. Now that bonds are producing income again, this is a great stress-free alternative to the equity focused approach retirees have been forced into for the past two decades.

[@charleshughes2487]

Government bonds or CDs - goal of bond ladder to be sure money is there when you need it government pays every six months / interest when you need it , goal bonds are maturing when you need it ….if you hold a bond to maturity , you get your principal back , Zillow value of home ..hold till mature principal back / key to this approach / hold till they mature /

[@gsnt4597]

Great content! This option is much better than an annuity!!!!!

[@TheDealHunter]

Is there a link available for the article that Amy mentioned in the video?

[@davidfolts5893]

Smart financial content! Thank you!

[@charleshughes2487]

Income - expenses -=portfolio withdrawals *( match bonds or CDs to withdraw e.g. $5,000 monthly )short term treasury bills , next year bond ladder ( take out $100,000 fir expenses *( principal and interest ) bonds used in retirement portfolio safe bonds , paying 4,5% ) both bonds , CDs pay interest , build a plan , know what withdrawals are.value of bond similar to Zillow value home …develop comprehensive plan , bullet shares slightly higher interest rate and risk, ( ( asset liability matching ) used by pension plans ….take worry out of what is happening in the market place …

[@xlavahott4547]

Banks buy treasuries to back their CDs. You may be required to pay income taxes in your CD interest each year you hold the CD. If you buy the treasury directly and skip the bank, you don't have an state income tax on the interest. So why get the CD? Does this make sense?

[@timothyflannery594]

It depends on which state u live in. Also, sometimes CDs make sense and sometimes they don’t. In a taxable account now. CD’s don’t make sense.

[@daw7773]

I see your point but if someone buys a CD in their Roth IRA, no taxes on interest.

[@stevemathews684]

Would the bonds reside in a tax-sheltered account (IRA)?

[@kinggeek1960]

Do use mostly treasuries for your clients bonds ladders or high grade corporate bonds?

[@charleshughes2487]

High grade corporate 😊?

[@charleshughes2487]

High grade corporate 🎉….,not a party 😢…

[@charleshughes2487]

What approach do you like for using a bond portfolio 🎉?