Laddering
Definition
- To arrange alternating or overlapping deposits into investments, such as CDs, to vary and get a better the rate of return.
Synonyms
alternating, staggering, hedging your bets, scale, to spread, sprinkling, to ladder
Related Terms and Acronyms
- Annuity Ladder — Definition,
- A financial plan to purchase multiple annuities from different companies over a number of years in order to minimize interest rate risk and the risk of a total loss.
- Bond Ladder — Definition,
- A series of bonds with different maturity dates, often times evenly spaced over a set period of time.
- Hybrid Mortgage — Definition,
- A mortgage split into different components in order to better manage risks and costs.
- Portfolio — Definition,
- A collection of investments.
- Split-Funded Annuity — Definition,
- Two annuities purchased together, one with a deferred payout and the other with an immediate payout.
