Do you know what CD laddering is? CD laddering is a way to minimize the risks of interest rate increases and inflation when investing in certificates of deposit. A good CD ladder will maximize your return while minimizing your investing risks.

How To Diminish Risks With CD Laddering

Laddering can be used for bonds as well. Ladders can be spread out to whatever interval and length you choose.

Have you ever used CD ladders? Do you think you will use them? Have any more questions?

I forgot to add that you can ladder Treasury bills.

Do you invest in certificates of deposit?

Do you prefer short-term maturities or long-term maturities?

With interest rates so low, it may be wise to keep some money in short-term for when rates do rise.

You may want to save some money in a savings account. It's true they are hardly paying anything right now; but when interest rates rise you will have some money easily available to catch the better rates.