Buying a Bond Ladder
- Under the Trade menu of your Scottrade® account, click Bond Ladder under the Trade CDs & Bonds heading.
- Complete the six-step bond ladder process.
Step One - Investment Type Indicate whether you would like to invest in taxable or non-taxable (or both) in the drop down box.
Step Two - Select Bond Types Check the box to the left of each type of bond you would like to invest in.
Step Three - How Much Do You Want to Invest? Enter the monetary amount you would like to invest in your bond ladder.
Step Four - Investment Horizon Decide the time length of your ladder, date of the first principal payment, and how many bonds you would like to build your ladder with by using the drop-down boxes offered.
Step Five - Safety Level Choose a desired safety level based on the bond ratings chart.
Step Six - State Depending on the criteria you have entered, you may be asked to enter the state in which you live (this is only relevant to municipal bond investing).
- Click the purple Get Results button on the lower right side of your screen.
- Select the bonds you wish to include in your ladder from the results offered.
- Click Buy This Ladder to view an Order Form of your purchase.
- Click the Review button on the right side of the screen to review all the sale information for accuracy.
- If your order is correct, click Submit Orders to finalize the purchase of your bond ladder.
Bonds involve risks including, but not limited to interest rate risk, reinvestment risk, inflation risk, call risk, liquidity risk, credit risk, market risk, default risk, event risk and a risk of loss of principal. New issue offerings are sold by prospectus or offering circular available at www.scottrade.com. Investors should read these carefully.
The strategies described in this article are for information purposes only, and their use does not guarantee a profit. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision. Securities are subject to market fluctuation and may lose value.