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Climb the CD Ladder to Higher Interest Earnings

By Yvonne Marsh, CFP®, CPA

We all need “safe” money in our investment strategy: Money kept in FDIC insured bank accounts for our emergency funds or perhaps parked on the sidelines waiting for a market correction.  FDIC insurance gives us peace of mind – insuring up to $250,000 per depositor at each bank.  But it’s painful watching your bank savings earn a mere pittance, all while inflation is averaging 2.2% and you’re losing purchasing power.

Want a quick solution to increase your bank interest earnings?  Enter the CD ladder.  A certificate of deposit (CD) is an FDIC-insured bank deposit where the bank guarantees you a rate of return for a given period of time.  The longer the period of time, the higher the interest rate. Of course the challenge in this low rate environment is who wants to lock in an interest rate for a long period of time when interest rates could/should rise?  With a CD ladder, instead of investing $50,000 in one CD at a locked-in rate for 2 years, you invest $12,500 in 4 CDs, maturing in 6 months, 12 months, 18 months and 2 years.  Then every 6 months you have 1/4 of your portfolio coming due to reinvest in the prevailing interest rate environment, so you can ride the wave as interest rates rise.  Using today’s interest rates, a 2 year CD ladder can earn roughly 3 times more interest than a money market account earning 0.5% in that same time period. A 3 year, 4 year, or 5 year ladder earns even more.

Let us help you construct your CD ladder.  We can shop hundreds of FDIC-insured banks across the country to find the best rates and then buy the CDs all held within one account at our independent custodian, TD Ameritrade.  As the CDs mature every 6 months, you can decide to keep investing in the CD ladder, or have the money sent to you, or move it in the markets.  We’ll take care of everything for you.  Our annual flat fee for this service is $150, and you need at least $50,000 for the ladder to be effective.  Call, email, or visit our website to schedule a complimentary meeting and start earning more interest today.

Marsh Wealth Management, LLC
1341 Branton Blvd, Suite 105
Knoxville, TN 37922

Financial Planning & Investment Advisory Services are offered through Marsh Wealth Management, LLC (“MWM”) an independent investment advisor registered with the state of Tennessee.  Yvonne Marsh is an Investment Advisor Representative of MWM in the state of Tennessee.  Marsh Professional Group, LLC is a TN registered public accounting firm and a separate legal entity from MWM. For a detailed discussion of MWM and their investment advisory fees, see the firm’s Form ADV on file with the SEC at

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