Why are the months of April and October CD replacement months? This short presentation discusses how certain financial situations can reverberate throughout decades.

1. a short
history
o f c d r e p l a c e m e n t
m o n t h s
presented by
Legacy Financial Partners
legacy-financial-partners.com
1.877.614.0141

2. introduction
You might know that April and
October are CD replacement
months. But do you know why?
The history that lead to these
sales opportunities is actually
rather interesting and shows
how economic events can ripple
far ahead in time.

3. black
monday
On October 19, 1987, the Dow
Jones Industrial Average dropped
a whopping negative 22.61%--the
index’s largest percentage drop.
This event would become known
as Black Monday and many
thought this was the precursor to
another Great Crash.

4. friday 13th
mini-crash
While markets rebounded, there
remained a great amount of
volatility, with after-shocks and
mini-crashes like the drop that
happened on October 13, 1989.

5. lingering
effects
Even though the economy has
been beaten and torn since 1987
(hello Great Recession of 2008!)
the effects of Black Monday are
still felt today. As markets
tanked in 1987, consumers
pulled out of exposed
investments and transferred
their money into Certificates of
Deposits.

6. rush for
certificates of
deposit
Hence October and April are now
CD replacement months, with
six-month and twelve-month
CDs up for renewal. For some
consumers, CDs can seem like a
great option for their money
—certainly they did in 1987.
With guaranteed interest rates
and FDIC backing, CDs seem like
a relatively sturdy ship to
navigate the sometimes choppy
waters of the market.

7. cd
replacement
options
However, because of their low interest
rates, CDs do not hedge against inflation
well, when compared to other products,
like certain annuities. This is especially
true with long-range CDs that many
consumers automatically renew out of
habit. This means that some consumers
may be losing real-world value that could
be parlayed into another solution that
works better against inflation and could
provide lifetime income.

8. cd
replacement
month
Obviously every consumer
presents a different situation.
For some, CDs may track well
with their needs. Others may not
even be aware that there are
other options. However, what
this means is that April and
October are good opportunities
for review, discussion, and
product sales.

9. Legacy Financial Partners is an
independent and full service Life Insurance
and Annuity FMO that provides specific
marketing solutions to help their clients
succeed. Using dynamic tactics, an
extensive support network and progressive
marketing options, Legacy Financial
Partners provides unique and specific
development strategies to our business
partners.
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