Would you put $100K in any of those or is it too long out as part of a ladder where I don't have any 5 or 6 years. Thanks!
what your time span is for them. At one point we had CD's maturing every 3 months and later at every 6 months and after the kids were grown we again consolidated the CD's and now I have then maturing yearly but with the savings rates so high I have enough for a new car or new roof or most any emergency without breaking any of the CD's.
With compounding the higher APY and the longer the CD is, the rate of return will be higher. But doing this depends on your situation.
Only you can make that decision.
Having an emergency fund or a CD coming due regularly is important.
I have everything tied up in my emergency fund in a 5.5% savings account. After summer and winter taxes are paid and my gifting to the kids it will be 6 1/2 % of my money.
But I am retired and have secure income with my RMD, pension and SS. You have to make your decisions.
We have been debt free since 1980. But then we had 2 children in college and one went for 6 years and one went on to med school. We had rules for them 3.5 in all grades or higher. No cars, no one perfect but let us know before we hear if from someone else or no college help from us. Same rules in college and a minimum of 15 hours in college, stay on campus, no car and never get in trouble. If you can afford a car or an apartment you can afford college on your own. One worked 96 hours in the summer and the other worked 107 hours. I worked 2 jobs and my husband worked all the overtime he could. Many weeks he worked 80 hours or more. Everyones situation is different.
But also remember while you wait and have money to invest in a higher rate CD or other account for a longer time you are also losing money by doing nothing. Figure out what the APY of the CD's will pay with the interest rate compounded at the end of 5 yrs. I am sure you will find out that will be well over 5% for a 5 yr CD. Rates I think are more likely to go down more rather than up. The 3, 6 and 12 month CD's are paying a good rate at over 5% still, if you want to earn something until your other CD's are mature get one or some of those. But I wouldn't wait for rates to go up. Just make sure what your penalties are if you do not have an emergency fund and other things in your life are secure for the things you can control. Ladder CD's so you can always have one mature. You will not always get the highest rate but every penny is invested all the time. You can add money to them or take money out as they mature.
No one can be 100% sure of their future. Just plan to able to get what you need if there is an unexpected incident in your life. Don't worry, just plan.
And do what you feel is right for you and your situation.
What is and was right for our family may not be right for you. Only you can make that decision.
Ever few years one happens. When you think the market is at its top go for it. I can't get any 10 yr CD anymore. The community banks is where they are more apt to be independent. The CEO about of one about 10 miles from me ended up be the head of the bankers association when I was still working. It is hard to fine an independent bank or savings and loan now that is good. I am 100% in credit unions. Down to 15 now. Everyones situation is different and not of know what we don't know. That is why we discuss things on this blog out accounts. Started with oil and OPEC in the 70's and 80's. What works for one person in their situation doesn't work for others.
The retirees use other finance blogs or read their books.
We had a finance class in the 50's for the whole 9th grade. Every school should have it. When I graduated I bought my parents a gift. I realized what it cost to raise a family.
I also do all my CD's on a big paper spreadsheet. It lists each CD, the original amount, the name of the institution, the APY, the phone number, acct. number, member number and when it will mature and where it moved to if it was. I list the information in a better order than I listed them here. My book of spreadsheets has 13 columns across and each column has a big white space above them that you can put the column contains. It has 40 lines down and each of the 13 sections across has 8 lined boxes for numbers etc and wider one for cents. I use one page for each CD. They are 2 sided pages. When you open the book you have 26 columns across if you need it, or you can use a CD on each side. I can also put in the monthly or yearly interest using 2 of the columns that helps with keeping track of my yearly income for conversions. I also use Papermate erasable pens.
Every DEC I make a list from the spreadsheets with the names of the institution, phone number, the type of CD it is and the maturities and color code the dates for the existing year and the following year. I keep that sheet in my my color coded calendar that I use a different color pen or pencil for anniversaries, birthdays, doctor and dentist appointments and CD maturities. I like the calendars from the Dollar Tree that when you open them the whole month is on both pages. I like that each day in this calendar has a box with 8 lines in it. They are sold out usually by the end of Aug. So if you want one call around and they usually are on an end cap. We have several stores in my town.
In the spreadsheet book I also sort the pages by Roths, Traditional and Reg Cd's and paperclip each the spreadsheets together in the book.
I also put an alarm on my phone 2 months before CD's become due to remind me to make sure I have the directions made for maturity, start checking rates, and make sure I have the paper work if I want to move it. Having the paperwork is a little tricky. Sometimes you can download them and print them days before the CD matures while making arrangements and so fax the paperwork to them from one of the local credit unions you belong.
Remember with a traditional IRA that you have to take the RMD out if you decide to move it.
Because of my age my children also have a copy with the amount redacted.
They also have an institution copy that names them both beneficiaries on each CD. Both being on each CD makes sure that they will not forget one. Make sure the institution marks the % for each beneficiary. Most are 50-50. When my husband passed and they were at my house they got on conference calls with the credit unions and gave their instructions for the CD's that I had taken my name off days before he passed so they could inherit them and then I disclaimed his IRA's. They printed out the paperwork, made copies of their drivers license etc and faxed it in. Each institution separated them as inherited IRA's or as reg Cd's with the same interest rates because they were higher than the newer rates so they had time to decide what they they were going to do with and invest the money.
I had a Mac crash and lost all my son's music. I won't even use
thumb drives now. Everything is on a spreadsheets.
One of my sons even uses a separate computer, a separate email address and thumb drives for anything that he does with banking and stocks etc. Years ago Clark Howard said that he did this on his radio show and I mentioned it to the boys.
So even if there is a fire, a tornado etc there are extra copies with the boys having copies.
But I actually have a small suitcase on wheels in the hall closet outside my
bedroom with the handle up ready to grab with all of this stuff in it with 2 sets of clothes and personal items and a plastic bag
with my prescription bottles on top of the suitcase in case I have to leave in a hurry, but easy to get to when I fill my prescription box for 2 weeks. I also have a day and night pills that I carry in my purse and change them every time I fill my 2 week pill case and put them in the next days box to take. I do not do mail order prescriptions. Many prescriptions are temperature sensitive. Check on the computer to see if yours are. On the sites where you can check your prescriptions that show what food not to eat with them, if they are compatible and if they are temperature sensitive etc is on these sites. Many are temperature sensitive and should be kept between 67º and 78º or they lose their effectiveness.
I pick them all up at the same time at the pharmacy in my grocery store. I pick them up every 3 months and 2 weeks early. So I always have nearly 2 weeks in the pill box and sometimes still 2 weeks in the bottles when I pick up my 90 supply when the 2 weeks in the box will be filled. You can call your insurance the first time or when you get a new prescription get it for 30 day a time or two if you want to get them all together. If they are just days apart then call the insurance company and mine approved it so I can pick them all up at the same time.
If you have locked safes and files with keys and combinations make sure the kids know where the sets of keys are hidden and have the combinations also.