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It seems like you would have an annual opportunity to get access to a portion of your bond assets at maturity with 10 1-year rungs in the bond ladder; whereas you would only have bi-annual @matuiry access to the funds with two-year rungs.

I established a 4-year municiple bond ladder to fund my son's college with annual maturities. However, one year into college my son has decided the academic life is not for him. Now I am looking a rebuilding the ladder with an eventual 10-year length. Pixy's article indicated that we can't predict interest rate changes; but I believe we are in for a long stretch of interest rate increases. I am wondering if in this interest rate-raising environment it would be better for me to rebuild the ladder with short-term (1 or 2 years) rungs. At least until it looks like the Fed is likely done with raising interest rates.

Your thoughts?

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