As you strive to make the most of your savings, financial advisor Seth Stewart at Brookstone Financial in Jeffersonville, IN, encourages you to consider the strategy of laddering CDs or bonds. This approach involves staggering the maturity dates of these fixed-income investments to create a balanced portfolio that combines safety and yield while maximizing your returns.One of the key benefits of laddering CDs or bonds is risk management. By spreading out the maturities of your investments, you reduce the risk associated with interest rate fluctuations. When interest rates rise, your shorter-term investments mature and can be reinvested at the new, higher rates, potentially increasing your income. Conversely, if rates fall, your longer-term investments continue to earn the higher rates established at their purchase, ensuring that your overall portfolio remains more resilient to market volatility.Laddering also offers liquidity and cash flow flexibility. With bonds or CDs maturing at regular intervals, you have access to funds on an ongoing basis, whether for planned expenses, emergencies, or reinvestment opportunities. This liquidity can be invaluable for retirees who rely on their investments to cover living expenses.Moreover, laddering enables you to strike a balance between generating current income and preserving your capital. You can allocate a portion of your portfolio to shorter-term bonds or CDs, which provide income you can use, while the rest can be in longer-term, potentially higher-yielding investments, which enhance your overall returns over time. This combination provides financial stability and growth potential for your savings.Seth Stewart suggests that laddering CDs or bonds is particularly useful when crafting an investment strategy for a portion of your retirement savings. By carefully selecting the maturities and types of bonds or CDs that suit your financial goals, you can create a steady income stream while preserving the capital you’ve worked hard to accumulate.In summary, laddering CDs or bonds is a thoughtful and strategic approach to managing your fixed-income investments. It offers numerous advantages, including risk management, liquidity, and the ability to balance current income with future growth potential. To make the most of this strategy, consider working with a financial advisor like Seth Stewart, who can help you tailor your laddering approach to your unique financial situation and provide guidance on creating a secure and profitable investment portfolio.