Masters in Business · Thursday, July 2, 2026
Stephen Lately identifies common mistakes investors make when building bond ladders, including chasing yield and neglecting to plan for reinvestment. He advises investors to first define their financial goals and then work backward to construct a ladder that aligns with those objectives, considering different asset classes for safety or income.
“I think some of it might be the reaching for yield, because because again, why are you laddering? What are you trying to accomplish? And so I think the best thing to do is always really sit down, figure out what your goals are, and then work backwards.”
“The other one would be really just trying to understand the reinvestment. Part of that. What do you do when you get one of the rungs maturing. Do you go out and put it into a longer rung? Are you going to take that cash and reinvest in a money market account. That's investor preference, but it matters for your total returns, So that's going to be up to you.”