Laddering is a strategy of staging the maturity dates of bonds in order to maintain your portfolio’s fluidity, so that you may not have to purchase many bonds when interest rates are low and favorable. As each bond reaches maturity, you can reinvest the principal into a new bond, with a new maturity date. Many people use laddered investments as sources of income, as each bond may generate income to the investor at different times. When the bond comes due, many investors move the money into more liquid, easily accessible investments.