Tell Me: the best way to steward money for my grandmother

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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Tell Me: the best way to steward money for my grandmother

Man In The Boat: Jan 2, 2006; Let's get down to brass tacks

You might consider a CD ladder at your bank. They're easy to set up. With that $55k you can set $15k aside for emergency (and to keep my example simpler) and buy 6-month, 1-year, 18-month and 2-year CDs at $10,000 each.. Every six months you'll be able to roll one into a 2 year CD which pays more interest. When (if) interest rates go back to normal it can provide a substantial return, even on a relatively small amount like $55k. The reason for the laddering is that you get higher rates for longer terms, but you get the opportunity to buy new longer-term CDs at more favorable rates every six months. They're FDIC insured so they're about as safe as cash. It won't grow quickly but it will grow steadily.

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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Tell Me: the best way to steward money for my grandmother