Comments on: Using CD Ladders To Save Wisely http://genxfinance.com/using-cd-ladders-to-save-wisely/ Helping a unique generation achieve financial independence. Thu, 24 May 2012 01:09:21 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: PennySeeds.com http://genxfinance.com/using-cd-ladders-to-save-wisely/comment-page-1/#comment-95936 PennySeeds.com Tue, 02 Dec 2008 15:52:46 +0000 http://genxfinance.com/2008/10/23/using-cd-ladders-to-save-wisely/#comment-95936 Yes, compounding interest is wonderful! I love it when my money earns me money. I hate paying financial institutions when they are already using my money. They should be paying YOU for them to use your money. I love getting interest checks every month from the bank. I'm not going to be using that money for a while, and so I don't really 'need' a ladder. The term will be up before I put it to use. Yes, compounding interest is wonderful! I love it when my money earns me money. I hate paying financial institutions when they are already using my money.

They should be paying YOU for them to use your money. I love getting interest checks every month from the bank.

I’m not going to be using that money for a while, and so I don’t really ‘need’ a ladder. The term will be up before I put it to use.

]]> By: Jim http://genxfinance.com/using-cd-ladders-to-save-wisely/comment-page-1/#comment-93299 Jim Sun, 09 Nov 2008 10:11:24 +0000 http://genxfinance.com/2008/10/23/using-cd-ladders-to-save-wisely/#comment-93299 You only did the math for 1 year, not taking into account the power of compound interest. You make a fine point, and I won't disagree with you, but I think CDs come down to risk management... immunizing a portfolio against future liabilities. You only did the math for 1 year, not taking into account the power of compound interest.

You make a fine point, and I won’t disagree with you, but I think CDs come down to risk management… immunizing a portfolio against future liabilities.

]]> By: My Journey http://genxfinance.com/using-cd-ladders-to-save-wisely/comment-page-1/#comment-92211 My Journey Fri, 31 Oct 2008 15:49:27 +0000 http://genxfinance.com/2008/10/23/using-cd-ladders-to-save-wisely/#comment-92211 I don't get it! If you do the math you are locking up your money for a couple hundred bucks more a year? If you check out the link I did the math there. I don’t get it! If you do the math you are locking up your money for a couple hundred bucks more a year? If you check out the link I did the math there.

]]> By: Jim http://genxfinance.com/using-cd-ladders-to-save-wisely/comment-page-1/#comment-91725 Jim Sun, 26 Oct 2008 18:43:57 +0000 http://genxfinance.com/2008/10/23/using-cd-ladders-to-save-wisely/#comment-91725 Congratulations on being mentioned in Barrons this week. A couple addition points would be 1) you can structure the ladder to free up money for future foreseen liabilities such as purchasing a car or a down payment on a new home and 2) in using a strategy such as this you will always want to balance reinvestment risk (the likelihood early maturities will need to be reinvested at a lower rate) against the risk that inflation could erode the payment on longer term securities. Congratulations on being mentioned in Barrons this week. A couple addition points would be 1) you can structure the ladder to free up money for future foreseen liabilities such as purchasing a car or a down payment on a new home and 2) in using a strategy such as this you will always want to balance reinvestment risk (the likelihood early maturities will need to be reinvested at a lower rate) against the risk that inflation could erode the payment on longer term securities.

]]> By: stocks http://genxfinance.com/using-cd-ladders-to-save-wisely/comment-page-1/#comment-91666 stocks Sat, 25 Oct 2008 23:38:27 +0000 http://genxfinance.com/2008/10/23/using-cd-ladders-to-save-wisely/#comment-91666 I think it's a great idea, plus it keeps the money out of my wife's hands so she doesn't spend it. One year, a $1000 CD that we bought, helped pay for x-mas and bills when we remembered we had it. I think it’s a great idea, plus it keeps the money out of my wife’s hands so she doesn’t spend it.
One year, a $1000 CD that we bought, helped pay for x-mas and bills when we remembered we had it.

]]> By: Nick http://genxfinance.com/using-cd-ladders-to-save-wisely/comment-page-1/#comment-91569 Nick Sat, 25 Oct 2008 01:44:26 +0000 http://genxfinance.com/2008/10/23/using-cd-ladders-to-save-wisely/#comment-91569 CDs are becoming better and better options as of late, because those high yield savings accounts (ING, HSBC, etc.) rates have taken a real dive. If you can deal with having your money locked up, they're worth it. CDs are becoming better and better options as of late, because those high yield savings accounts (ING, HSBC, etc.) rates have taken a real dive. If you can deal with having your money locked up, they’re worth it.

]]> By: Jacqui http://genxfinance.com/using-cd-ladders-to-save-wisely/comment-page-1/#comment-91517 Jacqui Fri, 24 Oct 2008 14:00:49 +0000 http://genxfinance.com/2008/10/23/using-cd-ladders-to-save-wisely/#comment-91517 I want to point out that it's not always the longest term CD that has the highest rates, and not all banks work on 6-month increments. I've got accounts with Century Bank Direct (highly recommend them! www.centurybankdirect.com), and here are their current CD rates: 5 Month CD: 4.01% APY 10 Month CD: 4.45% APY <-- highest rate is <1 yr !!! 15 Month CD: 4.16% APY 20 Month CD: 4.21% APY I want to point out that it’s not always the longest term CD that has the highest rates, and not all banks work on 6-month increments. I’ve got accounts with Century Bank Direct (highly recommend them! http://www.centurybankdirect.com), and here are their current CD rates:
5 Month CD: 4.01% APY
10 Month CD: 4.45% APY <– highest rate is <1 yr !!!
15 Month CD: 4.16% APY
20 Month CD: 4.21% APY

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