How to Make the Most of a Maturing CD: Rolling into FIAs or IULs

With the election results, Donald Trump’s status as President-Elect has triggered significant market movement, from a 1,500-point surge in the Dow to a steep climb in the 10-year Treasury yield to 4.43%. As markets react to these shifts, many individuals with maturing CDs are questioning what to do next. With bank CD rates remaining conservative, now might be the perfect time to explore alternatives like Fixed Index Annuities (FIAs) or Indexed Universal Life Insurance (IULs) that offer growth potential and flexibility—without the risk of market volatility.

Why Consider Rolling Over Your Maturing CD?

While CDs have traditionally been safe and predictable, their low returns may not keep pace with inflation or match today’s investment needs, especially when markets fluctuate so sharply. FIAs and IULs present an opportunity to grow your funds while offering stability—a particularly attractive feature amid today’s uncertainty.

What Are the Benefits of FIAs and IULs for CD Holders?

1. Growth Potential Without Market Risk: FIAs and IULs allow you to participate in market-indexed gains without direct market exposure. When markets go up, you can capture growth; when they go down, your principal is protected.
2. Tax-Deferred Growth and Tax-Advantaged Access: FIAs offer tax-deferred growth, allowing your funds to accumulate faster without immediate tax impact. For IULs, loans taken against the policy are typically tax-free, providing a flexible option for accessing funds.
3. Higher Yield Potential than CDs: With yields on CDs often lagging behind other conservative options, FIAs and IULs offer the potential for returns that better match inflation and economic trends, helping you maintain or increase your purchasing power.

Checklist: What to Consider When Shifting from CDs to FIAs or IULs

To make an informed choice, here’s a checklist to guide you through key considerations when rolling over your maturing CD:

• Determine Your Time Horizon: How long can you commit these funds? FIAs and IULs generally require a longer time commitment than CDs, but they offer better growth potential in exchange.
• Evaluate Your Risk Tolerance: FIAs and IULs provide stability with the potential for growth. Make sure these align with your comfort level regarding market exposure.
• Consider Liquidity Needs: CDs offer specific terms for liquidity. With FIAs and IULs, it’s important to understand withdrawal rules and surrender periods. Look for flexibility options if early access might be necessary.
• Understand the Tax Implications: Tax deferral in FIAs and tax-advantaged access with IULs offer clear benefits. Consult with a professional to see how these benefits align with your overall tax strategy.
• Compare Potential Yields: While the 10-year Treasury rate has climbed to 4.43%, FIAs and IULs may provide yields that are more attractive over time. Ensure the rate aligns with your financial goals and expectations.

Make a Strategic Move to Keep Pace with Today’s Market

With a maturing CD, you’re at a crossroads with your funds. Today’s changing market landscape could present both risks and opportunities—making FIAs and IULs a smart consideration for both protection and growth potential. By shifting from a “parked” CD to a more dynamic strategy, you can make the most of your funds while preserving your principal.

Reach Out to Kathryn & Kurt for Personalized Guidance

Navigating today’s financial landscape is complex, especially with recent developments. To discuss how you can maximize the potential of your maturing CD, reach out to Kathryn & Kurt at IUL.Solutions . We’ll provide a tailored assessment to help you make the most strategic and personalized choice.

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