One common use of a ladder is to spend the maturing principal.
But in your case you don't need to do that.
So the next common approach is to take the maturing principal and buy the next rung -- 2030 in your case. You end up with a rolling ladder, which basically mimics a bond fund that's customized to your preferred duration.
The other option is to wing it each time you have maturing principal: spend or buy the next rung or rebalance, based on your current circumstances.
This is the same question you'd face if someone happened to gift you the same amount of money: what to do with new money?
Do you have a plan for what to do with new money? If not, consider a donation to support Bogleheads!
But in your case you don't need to do that.
So the next common approach is to take the maturing principal and buy the next rung -- 2030 in your case. You end up with a rolling ladder, which basically mimics a bond fund that's customized to your preferred duration.
The other option is to wing it each time you have maturing principal: spend or buy the next rung or rebalance, based on your current circumstances.
This is the same question you'd face if someone happened to gift you the same amount of money: what to do with new money?
Do you have a plan for what to do with new money? If not, consider a donation to support Bogleheads!
Statistics: Posted by sycamore — Wed Jan 15, 2025 4:13 pm