CD ladders are an investing strategy in which you buy multiple CDs with different maturity dates

A certificate of deposit (CD) strategy guide

Popular CD investment strategies include the ladder, barbell, and bullet methods. These strategies can help you get the most out of investing in CDs.

Different CDs can have different term lengths, interest rates, and more

For instance, if a bank needs more deposits to fund loans, then it may offer high interest rates to attract deposits. Alternatively, a large bank with sufficient deposit reserves may have less incentive to grow its CD portfolio, offering lower rates as a result.

CDs come with risks, such as penalties for early withdrawal and inflation

CDs are generally considered fairly safe investment options. A CD bought via a federally insured bank is insured up to $250K.

Certificates of deposit are low-risk savings tools that offer a stable way to grow your money over time

Unlike standard savings accounts, CDs require you to lock in a fixed deposit for a set term, earning higher interest rates in exchange for limited access to your funds.

Explore current CD interest rates

Data itself is not (exactly) a financial advisor, but it can help you decide between a variable or fixed rate CD, or CDs with different term lengths. A chart from the Federal Reserve shows the three-month trend of CD interest rates.

Ray Dalio started his career as a golf caddy in Long Island

When Dalio was 12 years old, he worked as a golf caddy at the Links Golf Club. That's where he heard about the stock market for the first time and decided to invest in Northeast Airlines—the only stock he knew that was selling for less than $5 a share. Dalio ended up tripling his profit and became fascinated with the stock market—ultimately laying the foundation for his legendary career as a hedge fund manager.

Play a game that reveals if investors with a crystal ball make better trades

The "crystal ball" game reveals how well you would do trading stocks and bonds if you could see the front page of the Wall Street Journal one day in advance.

The dot-com stock bubble taught Howard Marks about markets

Annual investment letters from Howard Marks, the billionaire cofounder of top distressed debt shop Oaktree Capital Management, are required reading on Wall Street. The prolific writer and investor explains the distinction between the folly of trying to time the market and the necessity of paying attention to market cycles. The difference makes all the difference in returns.

The 'Two and Twenty' structure allows hedge funds and private equity firms to earn significant returns

With this structure, firms charge limited partners or "LPs" a 2% management fee for overseeing the fund (assets under management or AUM) and take 20% of the fund's overall profits (carried interest). Many private credit funds also operate under this structure.

There are monthly dividend ETFs that pay you to hold them

Traditional dividend stocks and funds pay out quarterly, or four times a year. A select group of stocks and funds pay out monthly, putting cash in investors’ hands 12 times a year. These monthly dividend funds are popular because their regular payouts can help keep budgets on track.

Retail investors are getting burned by long/short strategies

In the US, many retail investors lack the SEC-mandated status (a high enough net worth, income, and other factors) to directly invest in hedge funds. The regulator considers hedge funds too risky for the masses. Hedge fund-like strategies have emerged as a workaround, despite potential pitfalls.

Direct lending typically involves 'senior loans'

Direct lending, the most common subtype of private credit, typically involves senior loans which are secured by a company's assets. "Junior capital," on the other hand, is a type of private credit that is not secured by a company's assets, making it generally riskier than direct lending.

Compounding, explained

During conversations about personal finance, the term "compounding" gets thrown around—but not everyone understands how compound interest and compound returns work. Broadly speaking, compounding is what happens when you not only earn returns or interest on your original investment, but also on the accumulated returns or interest you receive over time. This article explains how both of these processes function, and what compounding could mean for your wallet.

Although no longer the dominant format, CDs are increasingly popular with younger people

The compact disc now only accounts for about 3% of all music industry revenue, but those who still purchase CDs are, generally, much younger than most would expect. A 2023 YouGov poll found that 53% of Americans were willing to pay for music on CDs. When broken down by generation, those under 45-years-old were more likely to express interest in CDs and vinyl.

Explore how fine jewelry investing works

Experts recommend that fine jewelry investors focus on the most in-demand brands like Cartier, and on trends, time periods, and stones with staying power.

BNPL's biggest risks include the ability to stack multiple loans simultaneously

Buy now, pay later loans come with some risks, such as the hefty late fees that can add up over time in the case of missed payments. However, personal finance experts say that tactics like reading the fine print can help consumers use these financial tools more safely.

Smart tips for making the most of your 401(k)

There’s a lot of advice about handling a 401(k), but it can be mired in disclaimers and legalese. Come prepared to your financial advisor or accountant by watching this informative take on how to properly use a 401(k), from consolidating plans to some of the most common errors.

How mutual funds work

Investing in mutual funds can give you access to a wide range of securities, such as stocks and bonds, with just a single investment. Mutual funds are one of today's most common investment options. There are different types of mutual funds, such as stock, bond, money market, and target-date funds.

'Buying the dip' refers to purchasing stocks or ETFs after a price decline in anticipation of a rebound

Some investors see it as getting a discount before the market recovers and the temporary declines turn into gains.

Dual-class stock structures separate equity and decision-making authority

In the past few decades, dual-class stock structures have become an increasingly popular way for companies to raise capital in public markets without allocating traditional shareholder voting rights. Meta, Estée Lauder, and The New York Times are companies that are famously dual-class.

Should you pay off debt or invest?

Some experts say you should put aside 20% of each paycheck and use that money for future goals, such as saving, investing, and paying off debt. But which should you prioritize first? It all depends on where you are in your financial journey. This article outlines the steps you should take depending on what your finances look like right now. Read it here.

League tables show the number of deals top investment banks do in a time period

These tables provide a visual to help keep track of the leading companies in investment banking. Companies such as JPMorgan and Goldman Sachs typically sit up top.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Cash balance pension plans provide the option of a lifetime annuity

Specifically, these defined-benefit plans are retirement plans that differ from traditional pensions in that they can come in one lump sum rather than in monthly payments. These plans are most popular among small business owners and their employees. Learn more about them in this article.

The best items to buy at dollar stores, according to a financial expert

Experts advise purchasing items like greeting cards, pregnancy tests, candy, gift and party supplies, and other items from the dollar store to maximize savings.

Long- and short-term capital gains have different tax implications

Short-term gains (assets held for one year or less) are taxed like regular income, at rates up to 37%. Meanwhile, long-term gains (assets held over a year) are capped at 20%, offering significant savings for high earners.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Watch this video that uses Lego bricks to explain how venture capital works.

Learn how to read a prospectus, the juicy document that any company must file with the SEC before going public.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

A century of Billboard issues documenting the evolution of popular music.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Play the role of a student in a game where you try to navigate college and remain debt-free, selecting different income levels, high school experience, race, ethnicity, and more.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

Explore chaos in this simulation of two double pendulums, where small differences in the release angles produce wildly different outcomes.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

To reduce wrinkles in clothing, research recommends gentle wash cycles with more water and tumble drying with smaller loads and longer times.

Fast-casual restaurant Chili's is experiencing a resurgence, with its parent company recently reporting a nearly 32% increase in sales, thanks to passionate Gen Z fans on TikTok.

Objects can be 3D printed with light by projecting 2D computerized tomography (CT) scans onto rotating cylinders of resin, which solidify upon exposure.

When a Paris department store hesitated to sell Estée Lauder's perfume, she 'accidentally' broke a bottle, causing the smell to spread throughout the store and shoppers to start asking to buy the scent.

Power lines are dotted with large, brightly colored balls to improve the visibility of these thin wires to helicopters and small planes and help prevent potential crashes.

See a ranking of the best (and worst) Federal Reserve Chairs since 1914 out of the 16 men and women who have held the office since.

Dirty lightning is a thunderstorm created from friction between rising and falling flows of ash and smoke during volcanic eruptions.

Crows are believed to have intelligence on par with a seven-year-old child and demonstrate complex behaviors, from problem-solving with tools to recognizing human faces.

Frank Lloyd Wright's houses are historically hard to sell because they're old, subject to local landmark commissions, and often unfashionable

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight

Doctors differentiate between a phobia and fear by asking patients whether their fear interferes with their day-to-day activities.

Elk Cloner, the first computer virus to spread in public, was written as a practical joke by Richard Skrenta, a Pittsburgh high school student.

US intelligence allegedly pursued more than 600 schemes to assassinate Cuban revolutionary Fidel Castro.