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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

September/October 2026

Building a Bond Fund Ladder

Growth coin and chart. The concept of investing in an index fund, increasing interest rate, finance and investment, and income tax. financial account. Growth money, fund bond

Bonds can diversify* your portfolio and provide steady income. To add stability, consider a bond fund ladder, an investment strategy that allocates funds across multiple bond funds with different maturities. This approach lets you benefit from changing interest rates over time, reducing interest rate risk and boosting income potential.


Creating a Ladder
First, with the help of your trusted professional, determine how much you're willing to invest in your bond ladder. It doesn't have to be a huge sum; even a few thousand dollars can make a difference. Next, consider dividing your investment among several bond funds, typically three to five. Selecting funds with different maturity dates will help maintain a steady cash flow as bonds mature.


For example, you could choose one bond fund with a two-year maturity, another with five years, and a third with ten years. When one fund matures, you can reinvest the principal into a new fund with a longer maturity, keeping your ladder intact. This strategy not only helps you avoid locking all your money into a single bond fund at a single interest rate but also lets you take advantage of potentially rising rates in the future.


Next, consider the different types of bond funds you might include in your ladder. For example, government bonds are often considered safe but typically offer lower yields. In contrast, corporate bonds can provide higher returns but carry correspondingly greater risk. Alternatively, municipal bonds may be a good fit, especially if you're in a higher tax bracket, since their interest is often tax-exempt.


Not Set in Stone
Bond fund ladders can be adjusted to fit changing market conditions. For example, if rates are rising, shortening the ladder's duration can help capitalize on higher rates sooner. Conversely, in a declining rate environment, extending the ladder's duration can help lock in yields for longer periods. Start building your bond ladder today to see how it may enhance your investment journey.


*Diversification cannot eliminate the risk of investment losses. Past performance won't guarantee future results. An investment in stocks or mutual funds can result in a loss of principal.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.

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