A certificate of deposit ladder may provide a good way to gain a step up on the personal finance climb. A CD ladder involves setting up CDs at different maturity periods, allowing an investor to take advantage of interest rates spread out over time. Once the first CD matures after a year, it can be reinvested as a new ladder rung.
If you’re interested in how a CD ladder works, several websites offer good information.
: Discusses the basic approach to building a CD ladder portfolio. /cd-ladder
: Provides brief CD ladder overview and calculator. /calcula tors/cd-ladder-calculator
Investopedia: Covers variety of CD ladder topics, including basics, considerations and benefits.
MainStreet: Explains how CD laddering works, and how to set one up.
The Street: Focuses on developing a CD ladder strategy. ing-strategy.html Chuck Myers, McClatchy-Tribune News Service
