Submitted by itsthebestlife t3_127zmmm in personalfinance
homeboi808 t1_jegjo2t wrote
> Should I put a small amount into a year CD and the rest into a longer one?
You can do that, sure.
Do you have a stock broker (say Fidelity) that you use?
I have Fidelity and buying CDs thru them are easy, just select the time-frame you want and pick one. They also have automatic “ladders” that you buy and it is split between different time-frames. You just have to fund money to them from your bank account after you link them (takes a few days).
itsthebestlife OP t1_jegr1gv wrote
No I don’t! I don’t even know where to start, this is mt first time even looking this. My cpa just told me about CDs. I’ll do this!
homeboi808 t1_jegrk8v wrote
I use Fidelity, but others are just as good.
itsthebestlife OP t1_jegt1br wrote
Thanks so much!
homeboi808 t1_jegt2jo wrote
One thing to add:
With CDs the taxes on earnings are on your income tax bracket, unless bought in a retirement account like an IRA.
With stocks/funds, if you own it for more than 1 year then when you sell the taxes on earning are lower (15% for people in the ~$40k-$400k income range). Selling them in under 1yr has earnings taxed on income tax bracket just like CDs.
itsthebestlife OP t1_jegt6pr wrote
Thank you so much.
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