Quote:
Originally Posted by Al18
A laddered CD sounds like a good idea. Thanks
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It's the way to go at this time.
Also, don't go out too far by getting excited by the 3% yield at the 5-year mark - it is going higher. Keep the maturities relatively short-term and don't lock in to longer-term rates until they are high enough to warrant it. For 5-year, I'd say that point is between 3.5% and 4%.
Today, the 3-year is 2.9% and likely before the Fed hikes next month it will be 3%, and the 5-year will be at/above 3.25% at that time.
If you are only talking about small amounts of money, and will be buying more as rates trend higher, no big deal. If you're contemplating putting a significant amount into this, again, be cautious on the longer-dated maturities.