A CD Strategy Worth a Look

Okay, you've got your emergency/opportunity fund set up - NOW WHAT? You could hold these funds in a savings account, checking account, or money market account. But, how about getting some additional income utilizing CD ladders?

Step Up Your Income With A CD Ladder: "Certificates of deposit (CDs) are very popular among individual investors. They are similar to bonds, but they have a few distinct advantages over that fixed-income instrument. CDs have only one structural difference to a normal bond, which is that interest is paid at maturity as opposed to periodically throughout the life of the investment. But there are other differences to keep in mind, including that interest on CDs is fully taxable and CDs are available only through banks and therefore carry FDIC insurance. A popular use of CDs is through the practice of creating 'laddered' CD portfolios, which provide a highly customized and safe way to produce cash flows." Read more of this guest article.