What is a bond ladder?

tigerspill

So does the term "bond" in this context really refer to her savings accounts rather than government/corporate bonds/gilts?

Paul_Herring

tigerspill wrote: »

So does the term "bond" in this context really refer to her savings accounts rather than government/corporate bonds/gilts?

Most of the time I've seen it mentioned it's these: https://www.investopedia.com/terms/f/fixed-incomesecurity.asp

The most common type of fixed income securities are bonds. A bond is an investment product that is issued by corporate and governmental entities to raise capital to finance and expand their operations and projects. The borrower, or issuer, promises to pay interest, called the coupon, on an annual or semi-annual basis until a set date. The issuer returns the principal amount, also called the face or par value, to the investor on the maturity date.

pensionpawn

I've only just thought up this idea myself completely independent from any outside influence, so I'm fairly chuffed about that. Perhaps I should have made a career in finance! Mind you, it is common sense! My rationale being protecting future cash, that can't all be invested into a pension after drawdown commences, from being eroded by inflation over the 20 years that I wish to top up me and the wife's pension by £3600 pa. The balancing act being ensuring the funds don't yield more than the £1k tax free interest pa. I don't want to have to fill out a tax return again! PS, this thread does appear to answer a question that I couldn't find the answer to which is there is no barrier to holding 5 fixed term saving accounts (bonds) ?