I recently met with my Fido rep and told him I am thinking about moving some of my fixed income in my Fido rollover IRA into a CD ladder. He suggested a "CD barbell" with a portion in 6-12 month CDs paying about 5% simple interest, and the remainder in 2-5 year CDs paying 4.6% interest, using the auto-roll feature. He also suggested an annuity as an alternative because it pays compound interest.
My current allocation in my Fido rollover IRA is about 45% in mutual bond / ETF bond funds (a mix of short-term and intermediate term), 5% in MM, and 50% in equities. I am 76, so need to withdraw RMDs each year. My intention would be to use the short-term CDs for annual RMD/QCD withdrawals, and then rebalance every 6-12 months.
Any thoughts on the barbell strategy and how to implement it?
My current allocation in my Fido rollover IRA is about 45% in mutual bond / ETF bond funds (a mix of short-term and intermediate term), 5% in MM, and 50% in equities. I am 76, so need to withdraw RMDs each year. My intention would be to use the short-term CDs for annual RMD/QCD withdrawals, and then rebalance every 6-12 months.
Any thoughts on the barbell strategy and how to implement it?
Statistics: Posted by RetiredCSProf — Thu Apr 11, 2024 12:14 am — Replies 0 — Views 78