November 26, 2024
The following is my personal reflection on topics covered in a CBS News article where I was featured as a contributor. You can access the full article on CBS News here.
I recently had the opportunity to share my insights with CBS News regarding why opening a CD account before the holidays might be advantageous for many Americans.
As a financial advisor, I’ve been closely monitoring interest rates and helping clients find the best savings vehicles for their specific needs.
The Holiday Season Financial Pressure
The article highlighted how the holiday season can put additional strain on people’s finances.
Having funds properly allocated, including in CDs, can help manage this seasonal pressure while still maintaining good financial habits.
I stressed the importance of having sufficient savings in today’s economic climate. “Over the coming year, we’re concerned, even reflecting on past poor terms, about the increased possibility that inflation will return.
People generally don’t have enough funds to build their holdings, or feel they don’t even have enough funds to maintain a savings cushion,” as I noted in our discussion.
Current CD Rates Present an Opportunity
One of the key points I emphasized in the article was how current interest rates have made CDs an attractive option again.
The article mentioned that CDs are now offering rates that haven’t been seen in years, providing a compelling reason to lock in these rates before any potential changes occur.
CD Laddering Strategy
The article detailed how laddering CDs can be an effective strategy.
I discussed with CBS News how this approach allows investors to take advantage of current high rates while maintaining some flexibility.
By staggering CD maturity dates, my clients can access portions of their money at different intervals while still earning competitive interest rates on their savings.
Protection Against Market Volatility
Another benefit of CDs that I highlighted was their role in protecting savings from market volatility.
As the article pointed out, with economic uncertainty still a concern, having a portion of savings in FDIC-insured CDs provides peace of mind, especially for those who can’t afford to risk their holiday or emergency funds.
Financial Planning for the New Year
It was interesting to see the data in the article about how many Americans are already planning ahead for their 2025 financial goals.
This aligns with what I’ve observed in my practice—the end of the year is an excellent time to set up financial strategies like CDs that can deliver returns throughout the coming year.
Taking Action Before Rates Potentially Change
For anyone who read the article and is considering opening a CD account, I’d emphasize that timing is crucial right now.
As highlighted in the CBS News piece, current rates aren’t guaranteed to last, so securing these terms before the holiday season could be a smart financial move for many individuals.
This reflection is based on an article originally published by CBS News titled “3 big reasons to open a CD account before the holidays.” To read the complete original piece, please visit the site here.