Money Management

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A buddy of mine has what I call a beast-mode emergency fund. It’s a full 12 months of living expenses (mine is more like three to four months).Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But instead of holding all this cash in a big savings account, he does something smarter: He’s built a CD ladder.His cash is split across twelve, 12-month certificates of deposit (CDs), with one maturing each month. This means cash hits his account monthly, like a self-funded paycheck. His theory is that if he ever lost his job, he wouldn’t need to access his entire cash pile all at once. He only needs one month of funds at a time.It’s quite smart actually. CD ladders give you the best of both worlds — locking in 4.00% or higher APYs and cash flexibility.Setting up a CD ladderInstead of locking up all your funds for a set period, a CD ladder lets you have multiple end dates. Some of your money is tied up short term, some mid term, and some long term.Each CD ladder is custom built. You get to decide how much to put into each CD, and the term.Here’s an example of how someone might set up a ladder with $12,000, using 1-year CDs:Month 1: Open a 1-year CD with $1,000Month 2: Open another 1-year CD with $1,000…repeat this for 12 monthsMonth 13: Your first CD matures. At this time, you can either roll that money into a new 12-month CD, pull out just your earnings and reinvest your principal, take all your cash, or anything in between.After a year, you’ll have 12 CDs maturing one by one each month. That gives you predictable access to your cash.Another way to start a ladder is by purchasing multiple terms upfront. For example, a 6-month, 12-month, 18-month and 24-month CD all right now, each with $10,000 in it.One thing I recommend is having all your CDs with the same bank. Our experts have reviewed and ranked some of the top banks here. Compare the best CD rates today, perfect for building your ladder.Why this strategy works in 2025Interest rates have held strong so far this year. But things are likely to change as most economists are predicting one (or even a few) interest rate cuts in 2025.Holding your cash in a high-yield savings account might give you a good APY today, but as soon as rates drop, so do your earnings.A CD ladder strategy locks in today’s higher yields. But it also gives you regular liquidity. You can build your ladder to match when you would like access to your cash (and how much).And let’s be honest. If your cash pile is for “emergencies,” you probably won’t be needing a huge amount of cash all at once. A CD ladder gives you a runway, without breaking CDs early and paying penalties.Build your own income streamA CD ladder is perfect for large emergency funds, short-term goals like home down payments, or any chunk of cash you don’t want to risk with investing.And in 2025, with rates still attractive, it’s a smarter place for your money than just letting it chill in a savings account. Start here by browsing today’s top CDs rates and choose a bank that suits you.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

A buddy of mine has what I call a beast-mode emergency fund. It’s a full 12 months of living expenses (mine is more like three to four months).

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But instead of holding all this cash in a big savings account, he does something smarter: He’s built a CD ladder.

His cash is split across twelve, 12-month certificates of deposit (CDs), with one maturing each month. This means cash hits his account monthly, like a self-funded paycheck. His theory is that if he ever lost his job, he wouldn’t need to access his entire cash pile all at once. He only needs one month of funds at a time.

It’s quite smart actually. CD ladders give you the best of both worlds — locking in 4.00% or higher APYs and cash flexibility.

Setting up a CD ladder

Instead of locking up all your funds for a set period, a CD ladder lets you have multiple end dates. Some of your money is tied up short term, some mid term, and some long term.

Each CD ladder is custom built. You get to decide how much to put into each CD, and the term.

Here’s an example of how someone might set up a ladder with $12,000, using 1-year CDs:

• Month 1: Open a 1-year CD with $1,000
• Month 2: Open another 1-year CD with $1,000
• …repeat this for 12 months
• Month 13: Your first CD matures. At this time, you can either roll that money into a new 12-month CD, pull out just your earnings and reinvest your principal, take all your cash, or anything in between.

After a year, you’ll have 12 CDs maturing one by one each month. That gives you predictable access to your cash.

Another way to start a ladder is by purchasing multiple terms upfront. For example, a 6-month, 12-month, 18-month and 24-month CD all right now, each with $10,000 in it.

Why this strategy works in 2025

Interest rates have held strong so far this year. But things are likely to change as most economists are predicting one (or even a few) interest rate cuts in 2025.

Holding your cash in a high-yield savings account might give you a good APY today, but as soon as rates drop, so do your earnings.

A CD ladder strategy locks in today’s higher yields. But it also gives you regular liquidity. You can build your ladder to match when you would like access to your cash (and how much).

And let’s be honest. If your cash pile is for “emergencies,” you probably won’t be needing a huge amount of cash all at once. A CD ladder gives you a runway, without breaking CDs early and paying penalties.

Build your own income stream

A CD ladder is perfect for large emergency funds, short-term goals like home down payments, or any chunk of cash you don’t want to risk with investing.

And in 2025, with rates still attractive, it’s a smarter place for your money than just letting it chill in a savings account. Start here by browsing today’s top CDs rates and choose a bank that suits you.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”According to a recent Gallup poll, 37% of Americans think real estate is the best long-term investment, while 23% say it’s gold.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. In a distant third, with just 16% of the vote? Stocks — by far the highest long-term earner on the list.Over the past 40-plus years, the stock market has greatly outperformed real estate, gold, savings accounts, and everything else on the list. Here’s why it’s still the best place for long-term investment.The return on each investment over several decadesHere’s how each investment option has performed over the last 40-plus years:S&P 500 stocks: From 1980 to 2024, the S&P 500 returned an average of 12% per year, including reinvested dividends.Bonds: From 1980 to 2021, the Bloomberg U.S. Aggregate Bond Index grew an average of about 7% per year.Gold: From 1980 to the end of 2023, gold grew an average of 4.4% per year.Real estate: Calculating annual returns on real estate is difficult due to variations in property types, locations, and market conditions. But it’s estimated that residential real estate in the United States grew 4.3% per year from 1967 to 2024.Finally, there’s crypto, which received 4% of the Gallup poll vote and is generally considered too volatile for long-term investment.Why does the S&P 500 win in the long run?The S&P 500 is an index made up of 500 of the largest U.S. companies, including corporations like Apple, Amazon, and Microsoft. As the economy grows, so does the value of these companies. Over time, that consistent growth adds up, while risk is mitigated by the diversity of the index.Compare that with real estate — say, your home or even a rental property. It’s generally a safe bet, but it’s highly sensitive to local market conditions. Property values in your area may boom or go bust. In any case, odds are you won’t earn more than the S&P 500 over long periods of time.How to invest in the S&P 500The easiest way to invest in stocks is through an S&P 500 index fund. These funds track the full index and charge very low fees, usually under 0.1%.You can invest through:Brokerage accounts: Open an account with one of the best brokerage platforms like Robinhood or E*TRADE from Morgan Stanley for easy online trading.Retirement accounts: You may already have S&P 500 exposure in your 401(k) or IRA. Look for an index fund option and consider increasing your contributions.Find the best long-term home for your money. Check out this list of our favorite stock brokers to find one that’s a good fit for you.Where does cash fit in?Stocks are the best long-term investment, but you’ll still want cash set aside for emergencies and short-term savings.That’s why we recommend opening a high-yield savings account (HYSA). Some of these accounts currently pay more than 4.00% APY — giving your money a boost while keeping it safe and accessible.What are you waiting for? Review all our favorite HYSA options now and earn up to 4.40% APY back on your money.Invest for the long run todayLike any investment, stocks go through down periods, sometimes for years. But in the long run, the stock market is still the best long-term home for your money if you’re looking for strong returns.Other investments like real estate, gold, and even bonds can play a role in your investment strategy, too. But if you’re saving for the long term — especially for retirement — stocks should make up the core of your portfolio.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

According to a recent Gallup poll, 37% of Americans think real estate is the best long-term investment, while 23% say it’s gold.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

In a distant third, with just 16% of the vote? Stocks — by far the highest long-term earner on the list.

Over the past 40-plus years, the stock market has greatly outperformed real estate, gold, savings accounts, and everything else on the list. Here’s why it’s still the best place for long-term investment.

The return on each investment over several decades

Here’s how each investment option has performed over the last 40-plus years:

• S&P 500 stocks: From 1980 to 2024, the S&P 500 returned an average of 12% per year, including reinvested dividends.
• Bonds: From 1980 to 2021, the Bloomberg U.S. Aggregate Bond Index grew an average of about 7% per year.
• Gold: From 1980 to the end of 2023, gold grew an average of 4.4% per year.
• Real estate: Calculating annual returns on real estate is difficult due to variations in property types, locations, and market conditions. But it’s estimated that residential real estate in the United States grew 4.3% per year from 1967 to 2024.

Finally, there’s crypto, which received 4% of the Gallup poll vote and is generally considered too volatile for long-term investment.

Why does the S&P 500 win in the long run?

The S&P 500 is an index made up of 500 of the largest U.S. companies, including corporations like Apple, Amazon, and Microsoft. As the economy grows, so does the value of these companies. Over time, that consistent growth adds up, while risk is mitigated by the diversity of the index.

Compare that with real estate — say, your home or even a rental property. It’s generally a safe bet, but it’s highly sensitive to local market conditions. Property values in your area may boom or go bust. In any case, odds are you won’t earn more than the S&P 500 over long periods of time.

How to invest in the S&P 500

The easiest way to invest in stocks is through an S&P 500 index fund. These funds track the full index and charge very low fees, usually under 0.1%.

You can invest through:

• Brokerage accounts: Open an account with one of the best brokerage platforms like Robinhood or E*TRADE from Morgan Stanley for easy online trading.
• Retirement accounts: You may already have S&P 500 exposure in your 401(k) or IRA. Look for an index fund option and consider increasing your contributions.

Where does cash fit in?

Stocks are the best long-term investment, but you’ll still want cash set aside for emergencies and short-term savings.

That’s why we recommend opening a high-yield savings account (HYSA). Some of these accounts currently pay more than 4.00% APY — giving your money a boost while keeping it safe and accessible.

Invest for the long run today

Like any investment, stocks go through down periods, sometimes for years. But in the long run, the stock market is still the best long-term home for your money if you’re looking for strong returns.

Other investments like real estate, gold, and even bonds can play a role in your investment strategy, too. But if you’re saving for the long term — especially for retirement — stocks should make up the core of your portfolio.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

“}]] Read More