April and October are traditionally known as CD replacement months, a designation that traces back to the October 19, 1987 “Black Monday” stock market crash. Investors, scrambling to protect their assets from the collapsing market, found safe harbor in Certificates of Deposit. The event left an impact that can still be felt decades later.
As a financial professional, you’re probably already familiar with the history behind CD Replacement Month. The question is, are you putting it to use? CD Replacement Month is a good occasion to sit down with clients to discuss how CD alternatives might be a better way to achieve their retirement goals. Or maybe you have a client whose situation is more conducive to using CDs as a savings vehicle. Or, an even more likely scenario, you have clients who aren’t fully aware of their options.
Leveraging CD Replacement Month
CD replacement month is an opportunity to dig deeper into the client’s needs, goals, and unique situation. Rather than limit the conversation to CDs and CD alternatives, use your probing skills to gain a sense of the client’s financial know-how and educate accordingly.
If the client owns or is interested in a low-interest rate product like CDs, they:
- Are gun shy about putting their money into anything tied to the market; or
- May not know about other, more valuable, options available to them.
Either way, the door is open for discussion.
CD Replacement Month Resources
It is extremely unlikely that your clients and prospects are going to have any top-of-mind awareness about CD Replacement Month, or be thinking about their CDs in the first place. It’s your job as their advisor to make the connection and plant the seed. To help engage those consumers, IAMS is now offering our 2024 CD Replacement Kit. This complimentary package includes:
- 2024 Taxable Equivalent Yield chart
- A split-annuity alternative guide and checklist
- CD vs. FIA sales strategies
- An SPL vs. CD calculator
- Prospecting letters, a fillable fact finder, social cards, and post copy
- Going Broke Safely and Market Loss Recovery concepts
- IAMS’ Beyond Capital Transfer guide
Click below or call (800) 255-5055 today to request your free CD Replacement Kit.
