Comments on: How To Build and Maintain CD Ladders http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/ Money Management, Small Business, Career Thu, 18 Mar 2010 13:56:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: 2009 Retirement Plan Contribution Limits http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/comment-page-1/#comment-16119 2009 Retirement Plan Contribution Limits Mon, 19 Jan 2009 10:12:58 +0000 http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/#comment-16119 [...] make you nervous, then consider placing your money in a high interest money market account or a CD until you feel more comfortable investing the money in equities. Most retirement accounts have a [...] [...] make you nervous, then consider placing your money in a high interest money market account or a CD until you feel more comfortable investing the money in equities. Most retirement accounts have a [...]

]]> By: Ryan http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/comment-page-1/#comment-14015 Ryan Tue, 07 Oct 2008 19:02:20 +0000 http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/#comment-14015 <strong>David: </strong>Not all banks offer CDs for every time frame, but you can easily create a CD ladder if you are willing to get creative on your first purchase. In year one, buy CDs of these time frames: two 1 year CDs, one 2 yr CD, one 3 yr CD, and a 5 yr CD. In your second year (after your two 1 yr CDs expire), you will need to buy a 3 yr CD and a 5 year CD. This will put you on schedule for a 5 year CD ladder. Then, each year when your CD matures, you will need to buy a new 5 year CD. Good luck! David: Not all banks offer CDs for every time frame, but you can easily create a CD ladder if you are willing to get creative on your first purchase.

In year one, buy CDs of these time frames: two 1 year CDs, one 2 yr CD, one 3 yr CD, and a 5 yr CD.

In your second year (after your two 1 yr CDs expire), you will need to buy a 3 yr CD and a 5 year CD. This will put you on schedule for a 5 year CD ladder. Then, each year when your CD matures, you will need to buy a new 5 year CD.

Good luck!

]]> By: David Kinkade http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/comment-page-1/#comment-14009 David Kinkade Tue, 07 Oct 2008 16:09:30 +0000 http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/#comment-14009 When using a 5 year ladder how do you buy a 4 year CD. I have not seen any for sale. Thank you When using a 5 year ladder how do you buy a 4 year CD. I have not seen any for sale.

Thank you

]]> By: Dividend Growth Investor http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/comment-page-1/#comment-10074 Dividend Growth Investor Thu, 24 Jul 2008 17:43:22 +0000 http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/#comment-10074 That's an interesting article. You still keep flexibility in case rates go up with a 5-10 year ladder, yet you can adjust even if rates start dropping as well.. That’s an interesting article. You still keep flexibility in case rates go up with a 5-10 year ladder, yet you can adjust even if rates start dropping as well..

]]> By: Ryan http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/comment-page-1/#comment-2284 Ryan Mon, 05 Nov 2007 22:53:13 +0000 http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/#comment-2284 Nice information, Free From Broke. It is very important to consider the current rates when you start a CD ladder, and had the rates not been where they are a couple weeks ago, my wife and I would not have built the CD ladder. But, the rates we got were between 4.91-5.16%, which we felt was good enough for us to lock into for several years. As with any investment, it is possible we may not get the best rate of return possible (rates could go through the roof like they did in the late 70's, early 80's), but then again, they could drop back down to 2-3% like they were a few years ago. We were comfortable at these rates, and I think we'll be fine. Thanks for the comment. :) Nice information, Free From Broke. It is very important to consider the current rates when you start a CD ladder, and had the rates not been where they are a couple weeks ago, my wife and I would not have built the CD ladder. But, the rates we got were between 4.91-5.16%, which we felt was good enough for us to lock into for several years. As with any investment, it is possible we may not get the best rate of return possible (rates could go through the roof like they did in the late 70’s, early 80’s), but then again, they could drop back down to 2-3% like they were a few years ago. We were comfortable at these rates, and I think we’ll be fine. Thanks for the comment. :)

]]> By: Free From Broke http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/comment-page-1/#comment-2283 Free From Broke Mon, 05 Nov 2007 21:42:12 +0000 http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/#comment-2283 Years ago when I first opened my ING account I set up a 5-year CD ladder. I soon realized that because the rates were so low at the time that my savings rate was eclipsing my CD rates after a few months. Now I set up one year CD's in a quarterly ladder (4 a year). I find this works out better to capture the best rates. Also, what's nice about ING is that they tend to give you a rollover bonus when you re-invest a mature CD. I've even been able to add to the CD amount on a few occasions. Years ago when I first opened my ING account I set up a 5-year CD ladder. I soon realized that because the rates were so low at the time that my savings rate was eclipsing my CD rates after a few months. Now I set up one year CD’s in a quarterly ladder (4 a year). I find this works out better to capture the best rates. Also, what’s nice about ING is that they tend to give you a rollover bonus when you re-invest a mature CD. I’ve even been able to add to the CD amount on a few occasions.

]]> By: Ryan http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/comment-page-1/#comment-2183 Ryan Tue, 30 Oct 2007 22:25:28 +0000 http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/#comment-2183 Glad to help Kyle. Good luck with that. :) Glad to help Kyle. Good luck with that. :)

]]> By: Kyle http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/comment-page-1/#comment-2182 Kyle Tue, 30 Oct 2007 21:59:28 +0000 http://cashmoneylife.com/2007/10/29/how-to-build-a-cd-ladder/#comment-2182 Good info, I am going to be investing some money in CDs at the end of the year so this will come in handy. Good info, I am going to be investing some money in CDs at the end of the year so this will come in handy.

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