Comments on: How to Setup Laddered Certificates http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/ Debt free, financially independent and retired early Sun, 30 May 2010 04:01:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Brian http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/comment-page-1/#comment-10335 Brian Fri, 17 Aug 2007 19:08:07 +0000 http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/#comment-10335 You bet. The mindset of the investor absolutely has to be considered. This is the same reason I don't always stick to the "don't pay extra towards your mortgage argument" even if mathematically would be better if they didn't. There is something to be said for peace of mind. You bet. The mindset of the investor absolutely has to be considered.

This is the same reason I don’t always stick to the “don’t pay extra towards your mortgage argument” even if mathematically would be better if they didn’t. There is something to be said for peace of mind.

]]> By: mnc http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/comment-page-1/#comment-10327 mnc Fri, 17 Aug 2007 15:37:48 +0000 http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/#comment-10327 That is actually a great point. Some people are too tempted when the money is in a very liquid online savings account and that could be a bad thing. That is actually a great point. Some people are too tempted when the money is in a very liquid online savings account and that could be a bad thing.

]]> By: Mark Andersen http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/comment-page-1/#comment-10326 Mark Andersen Fri, 17 Aug 2007 15:27:18 +0000 http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/#comment-10326 The other thing a laddered portfolio does is limit access to funds in a much greater sense, which helps people like my wife who spend it if they have it. The other thing a laddered portfolio does is limit access to funds in a much greater sense, which helps people like my wife who spend it if they have it.

]]> By: mnc http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/comment-page-1/#comment-10287 mnc Fri, 17 Aug 2007 02:27:05 +0000 http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/#comment-10287 While I agree with you that most online savings accounts beat the rates offered with CDs in today's market, you never know when rates will adjust. Using a CD can allow you to hedge against rates dropping with the online savings accounts. Personally, I have been sticking with the online savings account for my more liquid savings because of what you mentioned as I am not too concerned with the online savings rates dropping significantly. While I agree with you that most online savings accounts beat the rates offered with CDs in today’s market, you never know when rates will adjust.

Using a CD can allow you to hedge against rates dropping with the online savings accounts. Personally, I have been sticking with the online savings account for my more liquid savings because of what you mentioned as I am not too concerned with the online savings rates dropping significantly.

]]> By: Brian http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/comment-page-1/#comment-10284 Brian Fri, 17 Aug 2007 01:49:52 +0000 http://www.mynewchoice.com/2007/08/16/how-to-setup-laddered-certificates/#comment-10284 Although this is a great strategy to get decent returns and liquidity out of CDs, online savings accounts have begun to take over this role. With many online savings accounts giving upwards of 5.25% and 1-year CDs giving around 4.85% as of today (BankRate.com), they are no longer as attractive as they used to be. Although this is a great strategy to get decent returns and liquidity out of CDs, online savings accounts have begun to take over this role. With many online savings accounts giving upwards of 5.25% and 1-year CDs giving around 4.85% as of today (BankRate.com), they are no longer as attractive as they used to be.

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