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Thread: Investment strategy of CD laddering

  1. #1

    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?

  2. #2
    You can ladder from bonds too. Bonds can yield higher rates of return but can have some risk. The great thing about laddering your investment is you will not be penalized for pulling your money out early in case of emergency. You always have the option of pulling some out after each year to make an informed decision.

  3. #3
    Junior Member
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    In every game, you need to have a good strategy to win. The same also applies in stock investing. A good strategy when well implemented always assures a win or profit in the investment. If you are planning to make an investment you must at least have a strong strategy to use. If you do not have yet you can start making it now before you delve into a risky investment. You can ask for advise from other investors or you can search the net for a sample investment strategy that you can use or at least analyze.

  4. #4
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    This is right but ensure that you invest with the trusted bank. If so many scams today it is important that you double check their credibility.

  5. #5
    Well it really interesting, I think investment is a good think.

  6. #6
    Junior Member
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    Mar 2018
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    A good strategy when well implemented always assures a win or profit in the investment. If you are planning to make an investment you must at least have a strong strategy to use best grill cover?. If you do not have yet you can start making it now before you delve into a risky investment.

  7. #7
    Junior Member
    Join Date
    Mar 2018
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    You can ladder from bonds too. Bonds can yield higher rates of return but can have some risk. The great thing about laddering your investment is you will not be penalized for pulling your money out early in case of emergency You always have the option of pulling some out after each year to make an informed decision.

  8. #8
    Junior Member
    Join Date
    Jul 2019
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    The strategy that Andrew described looks safe and sensible. And given the past tense, he can show us the total yield. Although I like the bonds more.

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