We have covered the history of CD replacement month at great length here at Marketing Corner. Traced back to the October 19, 1987 “Black Monday” stock market crash, this marketing opportunity comes around every April and October due to the product’s 6- and 12-month renewal periods.
As a financial professional, you’re probably already familiar with this history lesson. 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, in an even more likely scenario, you have clients who aren’t fully aware of their options. With annuity rates still on the rise, and outpacing rates attached to CDs, now is the time for that conversation.
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
- May not know about other, more valuable, options available to them
Many consumers renew CDs because they’ve grown accustomed to the safety, term, and convenience provided by this product. Rate is important but secondary. No matter the situation, you can open the door by discussing the numerous benefits of CD alternatives.
- Better liquidity
- Tax deferral
- Avoid or minimize probate hassles and expenses
- Better return
IAMS offers a wealth of resources to help with that discussion. From portfolio reviews to alternatives that safely outperform CDs, we have you covered.
The IAMS 2023 CD Replacement Kit is a comprehensive and complimentary package that includes:
- 2023 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