Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
CD Ladders
Old 03-09-2009, 03:47 PM   #1
Recycles dryer sheets
 
Join Date: Sep 2006
Posts: 69
CD Ladders

I am sure this has been asked and answered before, but current conditions begs the question again.

Assuming FDIC banks are the only true safe investment, what is everyone doing as CD's reach maturity? How far out are you going to keep CD ladder intact, income stream coming in to prevent taking more cash out of savings, and position for hopefully return to better CD rates.

I am thinking no more than 18 months to 2 years even though rates stink but what is the alternative?

I see with all the government lending going on, that we could return to the 1980's when inflation was very high, but than again, CD rates were as well.

Thoughts?

Thanks
__________________

__________________
oliverdickens is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-09-2009, 03:57 PM   #2
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
The few I have maturing this year will be put right back into CD's albeit shorter terms at the best rates I can find (like 6 months at 3% APY or 18 months at 4.35% APY - at Navy FCU). I also have a HELOC I could be paying down but as long as the rate remains at 2.75% interest that is not a priority.
__________________

__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 03-09-2009, 07:47 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,292
I am trying for a ladder of 5-year CDs. Each year, I buy one 5-year CD for a certain fraction of my total pot. In 5 years, I will have one turning over each year. I don't expect to draw on my pot for at least 5 years. That may change.
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 03-09-2009, 07:58 PM   #4
Moderator Emeritus
Khan's Avatar
 
Join Date: Aug 2006
Location: Pine Island, Florida
Posts: 6,868
Send a message via AIM to Khan
I have a ladder of 5 year CDs. I 'harvested' the first one Dec '08.
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Old 03-09-2009, 08:39 PM   #5
Recycles dryer sheets
 
Join Date: Nov 2005
Posts: 331
Quote:
Originally Posted by OAG View Post
The few I have maturing this year will be put right back into CD's albeit shorter terms at the best rates I can find (like 6 months at 3% APY or 18 months at 4.35% APY - at Navy FCU). I also have a HELOC I could be paying down but as long as the rate remains at 2.75% interest that is not a priority.

I also ladder CD's. I have one due in over 2 years, I believe at that time rates will creep a bit up. I think your plan is good. I would lean towards the 4.35 if that is good enough for you. Maybe go a little further out if I can.

Almost 3 years ago, I locked in some at 5.6, going 5-7 years out. The banker tried to talk me out of it. He thought I was nuts going so far out and missing on other opportunities such as bonds and equities. I decided that I would rather be safe than make an extra few more points in the market. At the time the market to me was a head game, up and down, should I? Shouldn't I? Don't like head games, rather take less and sleep at nights, head is messed up enough

I figured it would cover my needs, since it supplements my pension and SS doesnt kick in until 6 more years. So 4.35 doesn't look bad to me, yes the market may make a dramatic comeback, despite what is said today, but I prefer to sleep, don't need the rollar coaster anymore.

Jug

You'll never get the best rate, but get one that you can live with.
__________________
jug is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
question on CD ladders simple girl FIRE and Money 12 07-28-2008 11:42 AM
About those five-year CD ladders-- I bonds? Nords FIRE and Money 6 07-05-2004 02:37 PM
dividend stock ladders unclemick FIRE and Money 27 06-03-2004 07:41 AM
Starting fixed income ladders woolybully FIRE and Money 2 07-25-2003 03:46 AM

 

 
All times are GMT -6. The time now is 08:02 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.