I understand how CD ladders work. However, they seem counter to how I'd like the money available.
For instance, I may be spending this money in 5 years or 10 years. I'm not sure.
So, making a 5 year ladder where a small portion is available each year does not make sense to me because I would never just spend a little of it. I'll either spend a large chunk or none at all.
Likewise, putting it all in a 5 year CD seems counter as well since CD ladders are supposed to capture a wider range of interest rates.
But, you do get a higher rate if the initial balance is higher and the term is longer. So, is buying one big CD the better idea.
I'm thinking of putting the money in a CD as I get it. With the first CD being 5 years. The next one being 4 years. The next one being 3 years.
I've also thought I should just forget about CDs since interest rates are likely to continue to rise.
Anyways, what CD structure (ladder or otherwise) works well for you?
If rates hit a certain number, do you buy as many long term CDs as you can?
If rates drop to a certain number, do you try to keep shorter term CDs, hoping they will rise?