A CD ladder splits your cash across multiple certificates of deposit with staggered maturities (e.g., 1, 2, 3, 4, 5 years). As each CD matures, you reinvest it in a new long-term CD — providing regular liquidity and smoothing interest-rate changes.
For retirees who want FDIC safety with higher yields than savings accounts, a CD ladder offers predictable cash flow and protects against reinvestment risk. But Treasury ladders are usually simpler, more tax-efficient, and equally safe.
Treasury securities are debt obligations of the US federal government. T-bills mature in 1 year or less, T-notes in 2–10 years, T-bonds in 2…
Savings vehicles for money you need in the next 0–5 years include high-yield savings accounts (HYSA), money market funds, certificates of de…
A bond is a loan you make to a government or corporation. In exchange, the issuer pays you periodic interest (coupon) and returns your princ…
A bond ladder is a portfolio of bonds with staggered maturity dates. Each year, one bond matures — providing predictable cash flow and autom…