1. Remember that CD ladders are losers every day - they pay less than inflation. So obviously that's one risk.
Not really. Current one year CDs paying @ 2.75% while inflation is 2.50%. And yes, 2.75% is > 2.50%
2. The other risk is opportunity loss but I'm sure Iggy is comfortable with that.
That can be said of any investment. Money tied up in one investment cannot be invested elsewhere.
3. but rates rising are ok on a short ladder like that one - not much of a risk.
Yes, Iggy has a very short term ladder so little risk
4.I'd opt for an online bank account instead - you can get 2%, totally liquid and they will adjust the rate as the market changes. Why lock up your money at all? Unless the CD rates are better than 2% I suppose.
I am unfamiliar with what online bank accounts are paying but as to CDs, one month is just above 2%, 1 year @ 2.75%