What is a CD Ladder?
The concept of a CD ladder is to help you plan out your CD investments so that you can continuously invest in CDs, maximizing your earnings and still provide some flexibility to your funds as to not constantly lock it down.
I’ve been trying to set up a CD ladder for myself. Interest rates have been in their all time low nowadays, even for CDs and high yield savings, but being that I’m not much an investor myself, I’ll like to take some action to bump up my savings as minimal as it may be.
To truly master the skill of CD laddering, you want to turn your CDs as liquid as possible. The ultimate goal is to have your CDs mature one after another so some of your funds are always available. Picture this: having 60 5-year CDs maturing every month of a 5 year period! But, of course, the average person will not have the funds/time/energy to sign up for 60 CDs, so depending on how large your savings are, you can decide on the interval of maturity whether monthly, quarterly, or annually.
How I Plan My CD Ladder
1. Decide on an maturity interval. You need to consider how often you want to have Continue reading