Social Security should not be the only source of retirement income. A CD ladder, municipal bonds, and a job in the gig economy are some options to explore. Laddering CDs and municipal bonds can provide consistent access to cash and avoid losing out on higher interest rates. Working in retirement offers benefits beyond just a paycheck, including social and mental health benefits.
Balances in certificates of deposit (CDs) have surged to $480.2 billion in February, up from $36.5 billion in April 2022, according to the Federal Reserve. However, many savers are not unlocking the full potential of CDs. A CD ladder can help savers navigate today's high interest rates and maximize their returns on cash.
Banks are offering high rates on certificates of deposit (C.D.s) and online savings accounts to attract deposits, but it's unclear how long the high rates will last. Savers looking for high yields may want to lock in C.D. rates soon. Creating a C.D. ladder can maximize interest earned while allowing periodic availability of funds. The Federal Deposit Insurance Corporation generally protects up to $250,000 per depositor, per insured bank. To avoid early withdrawal penalties with C.D.s, check the fine print before opening the account.
