Dads Daughters and Dollars

In this episode we discuss laddering and the pros and cons. It certainly beats the interest rate you can make at major banks. 

Laddering is an investment technique where you purchase several financial products with different maturity dates. You are usually buying bonds or certificates of deposit (CDs), or some sort of fixed income investments. Bonds and certificates of deposit (CD’s) are a time deposit where you get a fixed interest rate depending on how long you lend your money.

Say you have $5,000 to invest in various bonds and CD’s. You want to maximize your interest. It’s February of 2023.  You buy (5) $1,000 CD’s all in one day. One that matures in 1 year, 2 years, 3 years, 4 years and 5 years. The longer the maturity, in general, the more interest you make. So a 5 year CD would earn more than a one year CD. As of the publication of this episode in January of 2023, we see rates of 4.40% on 5 year CD's.  In a  year's time, when your 1 year CD matures, you buy a 5 year CD with that money. In two years time, when your 2 year CD matures, you buy a 5 year CD with that money. You continue that process or ladder each year until the only CD's you have are one's that have the highest interest rate. 

Please note you can earn more interest at some places but they require a much higher minimum deposit like $50,000. 

How do you find these rates? Simply type best CD rates today or best bond rates today into your search engine. Good Luck!

Chat GPT is a language learning artificial intelligence that was designed to imitate human conversation. Should you use it for personal finance? We discuss the pros and cons of Chat GPT! Enjoy!

We welcome Katelyn back from the 2022 World Cup and discuss 7 financial resolutions to ease your money anxiety in 2023. They are :

1. Create a budget

2. Save Money (Especially an Emergency fund)

3. Save for and Max Out Retirement

4. Ask for your Credit Report

5. Cut the Cord

6, Switch to a Cheaper Cell Phone Service

7. Delete Used Subscription Services

Links to things we discussed in this episode

https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/29e85188/ep-318-katelyn-needs-a-budgeting-app

https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/31cbe53f/ep520-top-financial-regrets-of-american-adults

https://www.dadsdaughtersanddollars.com/podcast-financial-independence/episode/3b79ff12/ep414-free-movies-online-im-in

https://clark.com/save-money/financial-resolutions/

https://www.annualcreditreport.com/index.action

During this episode, we discuss five reasons why women are inherently great investors and five reasons why women need to be investing now.

Warren Buffet, Rick Ferri and Jack Bogle school my Dad. How wise words made my Dad a smarter investor.

Yes, the title is really true! Find out what my dad learned from Pitbull the rapper and why he thinks it's so important for you to know. Enjoy the Holidays!!

We discuss Good Debt vs Bad Debt and give examples of both. Also how tired Katelyn is from shooting the Super Bowl. And we welcome our 17th country listening, South Korea! Welcome aboard.

We discuss the many steps you should take if you win the lottery. First and foremost, don't tell anyone! Then go incognito. Also the pros and cons of taking a lump-sum payment versus the annual payments. Here is the calculator we discussed to help you make a decision. https://www.afterlotto.com  Good Luck!!!

My dad explains his obsession with compound interest. It was 26 minutes well spent — surprised me! Find out how one penny becomes 10.7 MILLION Dollars!!

Solo 401K's have really big advantages for business owners. We discuss how you can benefit if you are a business with no employees.