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  • Writer's pictureJiayi (Kristy) Xu, MBA, CFP®

Global Wealth Harbor featured in ThinkAdvisor Portfolio Construction Column – “What to Do When a Client's CDs, Bonds Mature”

I was asked by ThinkAdvisor journalist how to help clients make decision on what to do when a client’s CDs and bonds mature. Below is my answer:


Just like helping clients with other financial planning subjects, helping clients decide what to do with maturing CDs and bonds starts with identifying the goals those CDs and bonds are intended to serve.


For instance, if the maturing CDs and bonds were planned to mature in the near future in order to fund short-term goals such as making down payment for a home purchase that will happen soon, the client will need to make liquidity and low volatility important criteria for investment options.


If the maturing CDs and bonds are purchased because the client wanted to take advantage of the high interest rate environment but don’t have an immediate use of the funds or plan to use them for long-term goal, the investment options will be more flexible and determined by a combination of factors such as the client’s investment goals, constraints, risk tolerance, existing portfolio holdings, and preferences.


If you are interested in reading the full article and other advisor’s responses, please use the link below:

 

*The information contained herein is intended to be used for educational purposes only and is not customized to the reader’s specific situation, and therefore the content is not intended to be legal, tax or financial advice.

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