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Capitol Building

US Treasury
Bond Ladder

Key Features
AUM Fee: 0.35% (annually)
Target Portfolio: $50,000
Financial Plan: Included
Customizable Duration
Automatic Reinvestment

The Treasury Bond Ladder service is offered as both a standalone solution and in conjunction with our Strategically Personalized Framework. The pricing of 0.35% AUM is the same in both the SPF & lone solution. Below you'll see a detailed description of the offering. If you'd like to learn more, or have questions about the solution please use the contact form below. 

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The TBL solution is a very low risk portfolio. Assuming the US Government doesn't go belly up, you'll get your money back. This offering is a little different from some of our other managed offerings because of that safety. Because this could be a short-term solution for something like a house purchase in 3 years, we don't require these clients to go through a full financial plan. You're certainly welcome to! Instead, we will have a "suitability meeting" to make sure that this solution is suitable for your needs and in our opinion the best available option to accomplish your goal for the funds. 

Can it be customized?

The bond duration of the portfolio is customizable to your needs. An example would be a client with a very low comfort with risk that's putting money aside for a family member's wedding in 5 years (at least you hope by then)! As long as you can provide us with a target date of need, we can make the ladder you desire. 

 

​One final important element is that we will automatically reinvest bonds as they mature unless told otherwise. We don't want a large cash position sitting in your account if we can avoid it. Thus, the responsibility is on you to let us know if you need the funds sooner than expected. 

How a US Treasury Bond Ladder Works...

A bond ladder is a tiered structure of individual bonds with different maturity dates. In general, our TBL solution restricts bond maturity dates to less than two years. A standard TBL would look something like this: 

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  1. 90-Day US Treasury (3mo.)

  2. 180-Day US Treasury (6mo.)

  3. 270-Day US Treasury (9mo.)

  4. 360-Day US Treasury (12mo.)

  5. 720-Day US Treasury (24mo.)

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These bonds will typically be evenly distributed with approximately 20% of the account's value in each bond. In this structure we have one bond coming due (paying into the account) in 90 days. Assuming the client hasn't informed us that they need these funds when that 90-days is up, we will purchase a new 360-day bond. This is what that looks like:  

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  1. 0-Day US Treasury (matured originally 3mo.)

  2. 90-Day US Treasury (3mo. originally 6mo.)

  3. 180-Day US Treasury (6mo. originally 9mo.)

  4. 270-Day US Treasury (9mo. originally 12mo.)

  5. New 360-Day US Treasury (12mo.)                  

  6. 630-Day US Treasury (21mo. originally 24mo.)

CASH

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Your Next Step!

US Treasury Bond Ladder
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