What is a ladder strategy?
A ladder strategy is often used when investing in GICs. The goal is to stagger maturities so that 20% of your total investment matures each year. As each GIC matures, you reinvest for a five year term, which will usually be the highest interest rate available at the time. You will always have a GIC that matures each year just in case you need to use the money for something else. You will also minimize the effects of interest rate fluctuations on your investment portfolio.
