Investment strategy of CD laddering
CD laddering is an investment strategy to get good returns on your Certificate of Deposits while having access to some of the cash every year. If you were to have about $10k to set aside for CD laddering, your investments would look like this:
$2,000 towards a one year CD at 1.80%
$2,000 towards a two year CD at 2.25%
$2,000 towards a three year CD at 2.60%
$2,000 towards a four year CD at 2.90%
$2,000 towards a five year CD at 3.20%
If after the first year you don't need the matured $2,036 you would put it towards another five year CD and so on after each year. What do you think of this strategy?