Build a retirement safety ladder - MoneySense

Build a retirement safety ladder

A bond ladder can protect you from falling stock markets in retirement.



Protect yourself from stock market slumps in retirement by keeping five years’ worth of living expenses invested in a “ladder” of safe bonds, with one-fifth of your holdings maturing each year.

That way, you can live off the money from your maturing bonds during a market downturn and you won’t end up decimating your portfolio by cashing in stocks when they’re down.