If you?ve decided to stock some money away in a certificate of deposit, why not reap the highest benefit over time by laddering your CD investments? What?s a CD latter? I?m glad you asked.
A CD ladder is made up by purchasing several CD?s at one time with different maturity dates. One example of a CD ladder is to have maturity dates of one year, two year, three year, four year, and a five year CD. These five investments make up the rungs of your CD ladder with one certificate maturing every year for the next five years.
For example, let?s say you had $10,000.00 to invest. You would buy 5 CD?s for $2,000 each with each one invested for one year more than the first. So you?d have a $2,000 CD maturing in one year, another in two years, and so on up to the last o View the rest of this article
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