Step One – Get Your Money Together
Step 2 – Shop Around
Step 3 – Set Up Your CD Ladder
Step 4 – Roll Over Year 1
Step 5 – Understanding Why You Should Use a CD Ladder
So you may be wondering why you wouldn’t put all of the money into a 5 year CD and wait. The problem with that is that you need to wait 5 years for that money to become available or lose most or all of the interest that you have accrued with the CD. By setting up a ladder you will be making maximum returns for the next 5, 10, 20+ years because once you hit that 5 year mark every single one of your returns has that 5 year income.