2324: MONDAY MASTERY - What You Need to Know About Laddering CDs by Dr. James M. Dahle
Optimal Finance Daily - Financial Independence and Money Advice
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How to Build a CD Ladder
A CD is a cash investment, like a savings account or money market fund. It will never lose principal due to market or interest rate fluctuations. A CD ladder is simply a collection of CDs with different maturity dates. The longer the term, the higher the interest rate the CD will pay. When interest rates rise, there's no hit to your principal unlike with a bond fund or individual bonds.
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