How CD Ladders Can Help Investors Gain Better Returns | WSJ Your Money Briefing

With today’s high interest rates and inflation, certificates of deposit are becoming an attractive way to grow savings over time.

WSJ’s Oyin Adedoyin joins guest host Danny Lewis to discuss how staggering your investments can make the most out of these assets.

0:00 What is a certificate of deposit?
1:41 What is a CD ladder?
2:34 Why choose CDs over savings accounts or treasury bonds?
3:28 Downsides to investing in CDs

Your Money Briefing
WSJ's personal-finance podcast features the news that affects your money and what you do with it, breaking down complicated money questions from spending and saving to investing and taxes.

#CDs #PersonalFinance #WSJ

[skoopqueen]

CD laddering is one of the smartest moves I made in diversifying my investments. 📈💰 By strategically spreading my investments across multiple CDs with varying maturities, I've not only safeguarded my capital but also enjoyed consistent returns.I wasn't financially free until my 40s, and I'm still in my 40s. I've bought my second house, earn on a monthly basis through passive income, and achieved 4 out of 5 goals. Investments are a wise decision I made

[auro]

how will you deposit cd if bank closes?

[word]

A simple explanation of the tax implications would also be helpful!

[savannahm.laurentian]

How about, how to keep your home and feed your kids?😵

[stevethomas]

Thank you for a very concise, easily understood video. It was very helpful.

[tcbridges]

Fidelity offers a 4 teer ladder for 1 year say at 5.30% and a 1 year for 5.30% if I did one of these for $240K how much difference would the return between them. I am having a hard time calculating the difference between them. Any advice would help me I'm in my 70's and can't figure in teer return part in 4 stags out

[bobbyf.]

Actually there’s only one sentence about CD ladder in this briefing. And unfortunately they made a mistake about this only point related to the title. “If you want to arrange 30, 000 in a CD ladder with an interval of 6 months, you can put 10K in 6month cd, 10K in 1 yr cd, and 10K in 3 yr cd”😂

[joe.oneill]

The CDs my bank issues are made of paper. I would never try to climb a paper ladder.

Seriously, Municipal Bonds, T-Bills, Bonds & Notes work out much better. The interest on them is tax-free.

[alimfuzzy]

Always be weary of "super safe" with "guaranteed returrns" investments.

[andrewwilson]

Excellent, highly useful post. Many thanks!

[rpishyao]

In a hyperinflationary environment this is not a good investment strategy.
I think your intention is to help the banks absorb savings and then further increase inflation.

[windpwaves]

Oyin--you need to become conceptually sharper or you will be replaced by ChatGPT.