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Using CD's Inside Retirement Accounts

ladder.jpgIt should be fairly easy to buy CD's inside of most brokerage IRA accounts now days.  Many brokers offer FDIC insured CD's in just about any maturity.  The Federal Reserve has been hiking interest rates all year so most yields should be over 5%.   We've mentioned some retirement income strategies in the past month and a "CD ladder" is a common method of generating income inside of an IRA.  Humberto Cruz provides some details.

As part of the fixed-income portion of a diversified portfolio, I have CDs maturing each of the next six years. If rates rise, I don't have to wait too long to renew at a higher rate. If rates fall, my longer-term CDs will continue to pay a higher yield.

Posted on Tuesday, August 1 by Registered CommenterWise Owl in | Comments Off