"..each year you spend 20% of your CD allocation on a new CD,.."Another option to having 5 CDs in the ladder is to have 8. You begin by buying a 3mo, 6mo, 9mo, 1yr, 2yr,3yr, 4,yr, & a 5yr. When the 3mo cd matures you replace it with a 1 yr, the same for the 6mo, 9mo. Three months after that when the 1yr CD matures you buy a 5yr and you once again have the same sequence of maturity dates (unless I messed up the numbers). By doing this you are buying a new CD every 3 months which is good to do when interest rates are rising as you keep getting better rates. When rates fall you can consider your options based on what's happening then.Just a thought,Ken
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