When and where will cd rates peak?

[Dawg52]

I will be retiring around the first of 2007 and just wondered where you think cd rates in the 5-10 year variety might be at that time. I will be selling the shares in the company I work for(privately owned) and should be able to live off the interest from that money if rates are in the 5-6% range. Anything over that will be gravy. I do have money invested for growth in my IRA and 401k accounts.

Just wanted your opinion. Thanks.

[laurence]

First off, congratulations! Second, I'm not the expert here, but if you are looking for long term income, are CD's the best vehicle for that? Obviously no one knows when they'll peak, but if you start building a ladder about a year before you retire, that might be a sound plan.

[Dawg52]

Quote:

First off, congratulations! *Second, I'm not the expert here, but if you are looking for long term income, are CD's the best vehicle for that? *Obviously no one knows when they'll peak, but if you start building a ladder about a year before you retire, that might be a sound plan.

I certainly plan to look at bond rates for income as well. However if cd rates continue to move up, why not allocate a good portion to cd's? They are guaranteed so no risk. Laddering a year before retirement is a good idea but I won't have that opportunity as I will hold my company stock until I retire. (annual bonus checks are somewhat tied to company ownership)

[haha]

Quote:

I will be retiring around the first of 2007 and just wondered where you think cd rates in the 5-10 year variety might be at that time.

Hmm, lets see. How about 5.76541217%?