Build a Bond Ladder to Give Yourself a Steady Income.

A bond ladder is a portfolio of bonds with maturity dates that are evenly staggered so that a constant proportion of the bonds can be redeemed at par value each year. As a portfolio management strategy, bond laddering may help you maintain a relatively consistent stream of income while limiting your exposure to risk. It can manage the exposure to losses caused by interest rate volatility and market inefficiency. It can also be used to set up income streams comparable to fixed annuities.