Comments on: Investment Strategies With $10,000 or less #1: CD Ladder http://www.gatherlittlebylittle.com/2009/12/investment-strategies-with-10000-or-less-1-cd-ladder/ Proverbs 13:11 - "...he who gathers money little by little makes it grow." Wed, 08 Feb 2012 18:29:01 +0000 hourly 1 By: Mikehttp://www.gatherlittlebylittle.com/2009/12/investment-strategies-with-10000-or-less-1-cd-ladder/#comment-13616 Mike Tue, 08 Dec 2009 23:36:36 +0000 http://www.gatherlittlebylittle.com/?p=2498#comment-13616 @Mrs. Money, Yeah I know, the rate are awful right for anything that is called "safe investments". However, it is still the way to go. @Financial Samurai, I just read your post and you are saying exactly the same thing. Except, you go the other way by buying 5 years CD each year. However, you don't start your ladder until 5 years instead of having it in place right away and you assume you will have the same amount of cash to invest in a 5 year every year. I you have had CD's maturing in 2003, 04, 05, 06, 07 and 08, the only "low interest" CD you would get is the part maturing in 08. Then again, if rates are to go up in the next 2 years, your 04, 05 and 06 will come at maturity and you will be able to benefit from another 5 years CD at a better date. The human is a creature of habits. I prefer starting the ladder right away and create the habit of renewing CD's every year. So if next year you don't have money to invest, you will still be able to benefit from better rates. @Mrs. Money,
Yeah I know, the rate are awful right for anything that is called “safe investments”. However, it is still the way to go.

@Financial Samurai,
I just read your post and you are saying exactly the same thing. Except, you go the other way by buying 5 years CD each year. However, you don’t start your ladder until 5 years instead of having it in place right away and you assume you will have the same amount of cash to invest in a 5 year every year.

I you have had CD’s maturing in 2003, 04, 05, 06, 07 and 08, the only “low interest” CD you would get is the part maturing in 08. Then again, if rates are to go up in the next 2 years, your 04, 05 and 06 will come at maturity and you will be able to benefit from another 5 years CD at a better date.

The human is a creature of habits. I prefer starting the ladder right away and create the habit of renewing CD’s every year. So if next year you don’t have money to invest, you will still be able to benefit from better rates.

]]> By: Financial Samuraihttp://www.gatherlittlebylittle.com/2009/12/investment-strategies-with-10000-or-less-1-cd-ladder/#comment-13614 Financial Samurai Tue, 08 Dec 2009 23:27:13 +0000 http://www.gatherlittlebylittle.com/?p=2498#comment-13614 I really think this is the wrong strategy. You should also invest in the longest duration CD as possible for yield maximization. <a href="http://www.financialsamurai.com/2009/10/02/the-only-cd-strategy-to-employ-for-maximum-retur/" rel="nofollow">"The Only CD Strategy To Employ For Maximum Return"</a> Enjoy and make more than others! I really think this is the wrong strategy. You should also invest in the longest duration CD as possible for yield maximization.

“The Only CD Strategy To Employ For Maximum Return” Enjoy and make more than others!

]]> By: Mrs. Moneyhttp://www.gatherlittlebylittle.com/2009/12/investment-strategies-with-10000-or-less-1-cd-ladder/#comment-13611 Mrs. Money Tue, 08 Dec 2009 19:13:04 +0000 http://www.gatherlittlebylittle.com/?p=2498#comment-13611 CD laddering was awesome a couple years ago. I remember when rates were like 5.40! It's still a good idea, but I'm just not as enthusiastic now. ;) CD laddering was awesome a couple years ago. I remember when rates were like 5.40! It’s still a good idea, but I’m just not as enthusiastic now. ;)

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