If you have a lot of cash on hand, it should be making money for you.

One way to ensure it continuously does that is to set up a ladder of Treasuries or FDIC-insured certificates of deposit with staggered maturities (eg, 1 year, 2 years, 3 years, etc.).

When a ladder might make sense

A laddering strategy can offer low-risk, predictable returns that will help you keep up with — or beat — inflation, while protecting your money during volatile markets and helping you meet your near- and intermediate-term goals.

“Which ladder works for you depends on your needs,” said Collin Martin, a fixed income strategist at Schwab Center for Financial Research.

For example, ladders can be useful if you want to:

Preserve purchasing power: A fixed income ladder can help if your main concern for a give

See Full Page