Posted: 2/11/2008 5:20:37 PM EDT
|
Looking for a little info on CD Ladders. I understand the basics of how they work, but are they a better investment than putting the money in a 401k or Money Markets? What will happen to CD's in times of inflation, a good investment or not? FWIW I am a couple of years off of retirement and won't need the money then, just like a little to play with if I get the urge... Thanks.. fullclip |
From clarkhoward.com/shownotes/2007/09/10/ An of course, CD rates www.bankrate.com/brm/rate/deposits_home.asp |
| Sweet, they even have a tool for CD laddering! www.bankrate.com/brm/calsystem2/calculators/cdladder/default.aspx |
|
I'm building a ladder with my emergency funds. I plan to have 12 one year CDs, each with one month's worth of money. I only have one to go thankfully. This way if I lose my job I can just cash one of these each month. Now seems like a bad time to lock into long term CDs though. The rates suck. I was getting 5.5% last year now it's down to 3.65%. |
That's the good part about ladders. As rates climb, you're never too far from putting money from a low-rate into a higher rate CD. |