Bond Ladder Tool from Fidelity

Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: "

Simplified interactions	Intuitive design allows you to build your ladder on one page that includes educational content to make it easier to understand your options.
Summary calculations	View estimated income and principal in chart format for your ladder before you purchase it.
Generate dependable income¹	Depending on the bonds in your ladder, income payments can be scheduled monthly, quarterly, or semiannually.
Provide ongoing liquidity	If you structure your ladder to have bonds expire at regular intervals, cash can be available on a consistent, scheduled basis (assuming no default by the issuer of the bond).
Reduce reinvestment risk	If interest rates rise, you may benefit from purchasing higher-yield bonds with the income from the bonds already in your ladder. If rates fall, bonds with future maturity dates would continue to be locked into the initial higher yields (assuming they are not callable).²

Sample bond ladder

In the hypothetical example below, $60,000 is invested in three bonds with different maturities and yields in year 1. In year 2, the investor rolls the proceeds from Bond A into a fourth bond (Bond D). In year 3, the investor rolls the proceeds from Bond B into a fifth bond (Bond E).

For illustrative purposes only.

Fidelity does not automatically roll the proceeds from one bond to another as part of the Bond Ladder tool.

Bond Ladder Tool

Questions?

Key Features

interest rate

debt obligation/principal

maturity, maturity date(s)

rung

Mutual Funds and Mutual Fund Investing - Fidelity Investments