This pie chart details by percentages the types of bonds and certificates of deposit (CDs) to consider in building in your bond and CD ladder. It recommends the largest percentage — 40% to 50% — should be bonds and CDs with an intermediate-term maturity of six to 15 years. The second-largest amount — 30% to 40% — should be in bonds and CDs with a short-term maturity of up to five years. The smallest amount — 15% to 25% — should be in bonds and CDs with a long-term maturity of 16 years or more.
This pie chart details by percentages the types of bonds and certificates of deposit (CDs) to consider in building in your bond and CD ladder. It recommends the largest percentage — 40% to 50% — should be bonds and CDs with an intermediate-term maturity of six to 15 years. The second-largest amount — 30% to 40% — should be in bonds and CDs with a short-term maturity of up to five years. The smallest amount — 15% to 25% — should be in bonds and CDs with a long-term maturity of 16 years or more.
Important information:
You must evaluate whether CD ladder and the securities held within it are consistent with your investment objectives, risk tolerance and financial circumstances.
CD values are subject to interest rate risk such that when interest rates rise, the prices of CDs can decrease. If CDs are sold prior to maturity, investors can lose principal value.
Please see the Certificate of Deposit Disclosure Statement (PDF) for additional information.