Ladder mess

[Hyper]

What's the best way to keep your CD ladders structured/straight?
I currently started our first actual 7 yr ladder that's ok, IMO?? Utilizing a "budgeted,sort of" yearly needed amount.
We have 6 other CDs with maturing dates making no sense that I purchased at different times trying for the best rate.
Not to mention we also have 7 more GK cd with different maturing dates.
Kinda feels like I have a mess going on.

 

[Gumby]

What's the best way to keep your CD ladders structured/straight?
I currently started our first actual 7 yr ladder that's ok, IMO?? Utilizing a "budgeted,sort of" yearly needed amount.
We have 6 other CDs with maturing dates making no sense that I purchased at different times trying for the best rate.
Not to mention we also have 7 more GK cd with different maturing dates.
Kinda feels like I have a mess going on.

My suggestion is to make a list of of what you have by current maturity date. Then list the maturity dates you want to have and, as CDs come due, pick new maturities that fit into the desired slots. That's what I am currently doing.

 

[pb4uski]

+1 An imperfect ladder is much better than no ladder at all.

In the OP's case, 7 rows for each of the 7 years/rungs and 3 columns for Target, Actual and Difference.

Then as bonds mature or are called buy more bonds to fill in the differences.

 

[Al18]

In my spreadsheet of investments, I have one sheet listing the initial CD amount, opening date, interest rate, current amount, maturing date, maturity value and bank - all on one line. On another sheet I’ve created a CD Calendar. The CD Calendar lists January - December and total, at the top of each column. I have 3 rows setup for years 2024, 2025, etc. At the top of the page are the banks I have CD’s at, color coded. I just copy the maturity value into the month/year cell and color code the value per the legend. The advantage is I can see all maturity values by month/year of all my CD’s on one page. This helps with budgeting..

 

[jazz4cash]

I see no particular benefit to having a structured ladder. When I evaluate fixed income rates I’m looking for value. If the 6 yr term appears to have more value vs a 5yr I’ll buy that or even double up. It works for me cause I only need a fairly small supplement to meet expenses. The Fidelity fixed income tool display is great but I also use a spreadsheet.

 

[Car-Guy]

I don't worry about it. My ladder has some larger gaps, medium gaps smaller gaps, (rungs) but it doesn't bother me. When I have enough extra cash, I just buy the best deal I can find at the time. 9mo, 1yr, 18mos, 2yrs... Doesn't matter to me.

 

[WWDog]

How do you determine the best deal? That could encompass a lot of particulars and end results.

 

[Al18]

Before retiring 5+ years ago, I used to try and space out the CD maturity to have one maturing every 3 months. When interest rates increased in 2022 and flipped (1-2 year CDs had a higher APR than 3, 4 and 5 year CD), I decided higher interest rate was more important. Turns out the stock market has done much better since retirement, so I’ve been selling more stocks and less CD’s to fund my early retirement.

 

[skyking1]

How do you determine the best deal? That could encompass a lot of particulars and end results.

you can't wring every penny out of the wad, and tracking it that fine and woulda coulda shoulda just buys into needless worry.
I set some simple goals for the ladder I will buy with our current home sale. Not going to put too fine a point on the pencil.

 

[pletal]

What's the best way to keep your CD ladders structured/straight?
I currently started our first actual 7 yr ladder that's ok, IMO?? Utilizing a "budgeted,sort of" yearly needed amount.
We have 6 other CDs with maturing dates making no sense that I purchased at different times trying for the best rate.
Not to mention we also have 7 more GK cd with different maturing dates.
Kinda feels like I have a mess going on.

Been laddering CD’s for 35 plus years. I use an Excel spreadsheet. Divide by years and by maturity date. You can also add rate. Where they are and acct number. The most I had at one time was 88, now combining and getting it down to about 40. Once you get spreadsheet done it will be easy.

 

[Badger]

I only have 11 CD's but they are all on an Excell spread sheet listed by maturity date. It also list the banks and rates. As they mature they are swept into a MM account for me to buy more if the rates are favorable enough. The maturity day and month are not a significant factor as long as they are spread out a bit.

 

[Al18]

The maturity day and month is absolutely important if you buy your CD at banks and credit unions, as auto renew is the default and most only give you 10 days after renewing, to cancel the CD without penalty.

 

[Car-Guy]

The maturity day and month is absolutely important if you buy your CD at banks and credit unions, as auto renew is the default and most only give you 10 days after renewing, to cancel the CD without penalty.

Another benefit (as I see it) of brokered CD's. They don't auto renew.

 

[Badger]

The maturity day and month is absolutely important if you buy your CD at banks and credit unions, as auto renew is the default and most only give you 10 days after renewing, to cancel the CD without penalty.

I suppose I wasn't too clear. It was meant to refer to my accounts not anyone elses. You always know the day and month of maturity of the CDs purchased at CU or brokered and I have taken that into account when originally investing. Laddering CDs for me is supposed to have this factored in before purchasing so they can be maturing at intervals of my choosing. I also don't want to have any auto renewed. As with all my investments I decide when and where I invest.