Buying and Laddering CDs and Treasuries

With the Fed raising interest rates, the interest paid on CDs and Treasuries has risen also, to respectable levels.  One year ago, I was only able to  get 0.1% on a 1 year CD.  Now 1 year CDs are in the 1.25-1.4% range.   2 year CDs are paying 2.20%.  Much better than the savings/sweep accounts are paying only 0.01%.

Yeah, I know, inflation is coming.   However, these funds are intended to be available when needed.   Thus, doing a CD/Treasuring ladder is an acceptable alternative to get higher interest rates while waiting.  Currently, I am only laddering out to 3 years since the yield curve is flattening after 2 years.

Hopefully, inflation will get under control.  But if CD/Treasury rates go up to 5% or higher, I will definitely add more funds to fixed income.

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This is not financial nor investment advice. Please consult a professional advisor.

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