UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75878  
Subject: Re: ?Bond Ladder II Date: 1/5/2001 12:03 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
Treasury bills come 3 month, 6 month and 1 year.
Notes come 5 year and 10 year.
Bonds come 30 year.
There used to be a 2 year and 3 year note. As the borrowing needs of the government have decreased, they have been phased out. There was also a 20 year and long ago a 4 year.
So in setting up the original ladder, you need to use some corporates (or municipals if you prefer). As they mature you can replace with treasuries, which are safer, can be bought without commissions through Treasury Direct, and on which you pay no state tax.
When you buy Corporates it needs to be through a broker, with rare exceptions. If your hometown electric company is planning an expansion you might get a mailing inviting you to invest directly. Those chances aren't common; if it happens, consider going for it, particularly if you are going to live in the same place for an extended period.
Clear?
Best wishes Chris
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

My Big Fat Greek Splat
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement