No. of Recommendations: 1
You might look into a CD ladder. Keep $20k out for the current year spending, then divide the rest equally between CDs for 1, 2, 3, 4, and 5 years.

In a year when the 1st CD matures, take out the $20k for that year's spending and roll the balance into a 5 year CD. Repeat each year as a CD matures.

You probably won't get 2% today. The best 5 year CD rate I saw in a very quick search was about 1.8%. And the shorter term CDs will have lower rates. But if rates kick up over the next 10 years, you might get close to an average of 2%.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.