# Bond ladders



## Brookswood (Oct 11, 2022)

I finished another bond ladder today.   It starts at a tad under 3% at 3 months and ends at about 4.2% for 18 months.     That's a lot better than the 0.2% a local bank is paying.  And still better than the 2.25% an internet bank is paying.   Unfortunately, it' still under the inflation rate.


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## mathjak107 (Oct 12, 2022)

You can get cd ladders at fidelity that pay well too


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## rkunsaw (Oct 12, 2022)

I'm thinking of buying a one year cd every month for a year. Then I can reinvest and add to as they come due or if needed I'll have one coming due every month for income.
Note: Edward Jones has a one year cd paying 4.05% 

Opinions please or better ideas?


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## Brookswood (Oct 13, 2022)

As long as you don't risk not having enough cash on hand for emergencies, It sounds like a plan.  But.....    You will be keeping the cash  for buying the future CD's earning a lower rate of interest in an ordinary savings account.  You might consider a few 3 month and 6 month CD's to get the higher interest rates as you wait for the time of future purchase of one year CD's.   As they mature use the proceeds in the next month or two to purchase the planned one year CDs you had planned on. 

Given our high inflation rate, there is no point in leaving interest dollars on the table unless you want to make your banker happy.


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## rkunsaw (Oct 18, 2022)

Brookswood said:


> As long as you don't risk not having enough cash on hand for emergencies, It sounds like a plan.  But.....    You will be keeping the cash  for buying the future CD's earning a lower rate of interest in an ordinary savings account.  You might consider a few 3 month and 6 month CD's to get the higher interest rates as you wait for the time of future purchase of one year CD's.   As they mature use the proceeds in the next month or two to purchase the planned one year CDs you had planned on.
> 
> Given our high inflation rate, there is no point in leaving interest dollars on the table unless you want to make your banker happy.


The 3 and 6 month cds don't pay much more than regular savins account. I'm thinking if the fed keeps raising rates the cds will pay more each month. 
T really don't think the stock market is going to be worth investing for a couple more years. Long term investors might do well buying quality stocks now but I'm eighty years old and can't wait years for things to get better.


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