A strategy where you buy multiple bonds that mature at different times over a period of years. Instead of buying all bonds that mature at once, you spread them out so you receive your money back gradually. This approach can help you manage your cash flow and reduce the risk of reinvesting all your money at once.
You invest $5,000 in each of five Treasury bonds: one maturing in 1 year, one in 2 years, one in 3 years, one in 4 years, and one in 5 years. Each year, one bond matures and you get $5,000 back. You can then decide whether to reinvest that money or use it for expenses, rather than having all $25,000 mature at the same time.
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