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October is CD Replacement Month: Explore the Alternatives…ANNUITIES!

As October winds down and Q4 settles in, it’s the perfect time to help clients reassess their savings strategies. With interest rates easing and inflation eroding fixed returns, Certificates of Deposit (CDs) may no longer be the best option for conservative investors. CD Replacement Month is an ideal opportunity to consider alternatives like Multi-Year Guaranteed Annuities (MYGAs) – especially the new Axonic VantagePoint Fixed Annuity, which offers both safety and performance.

Why MYGAs Make a Great CD Alternative

Multi-Year Guaranteed Annuities (MYGAs) function similarly to CDs in that they offer a guaranteed rate over a fixed term, but the similarities stop there. MYGAs go a step further by providing additional features that enhance both growth potential and financial planning flexibility.

Here’s how MYGAs outshine CDs:

  • Competitive Guaranteed Rates: For example, the Axonic VantagePoint Fixed Annuity offers a 5-year guaranteed interest rate of 5.55% for deposits of $100,000 or more. That’s well above most CD rates available today. Click here to see the current rates.
  • Tax-Deferred Growth: Unlike CDs, interest earned in a MYGA grows tax-deferred until withdrawal, potentially reducing annual tax liability and compounding more effectively.
  • Beneficiary Protection: MYGAs allow policyholders to name beneficiaries, enabling the remaining value to pass directly to loved ones—avoiding probate delays and costs.
  • 10% Free Withdrawals Starting Year 2: While CDs typically penalize early withdrawals, MYGAs offer more flexibility. Starting in the second year, clients can access up to 10% of the contract value annually without penalty.

Not sure how to present the case? Start with the linked CDs vs. MYGAs Comparison tool to lay it out side-by-side: showing real numbers, outcomes, and advantages. It’s a simple but effective way to guide your clients through the decision-making process.

Spotlight on the Axonic VantagePoint Fixed Annuity

If you’re looking for a CD replacement strategy with standout features, the Axonic VantagePoint deserves a closer look.

Key Benefits:

  • 5.55% guaranteed for 5 years (for deposits of $100K+)
  • Strong alternative in a declining interest rate environment
  • Backed by a highly-rated insurer with a reputation for transparency and service

For clients seeking safety, predictability, and better yields, the Axonic VantagePoint stands out as a smart, straightforward solution.

Win-Win for Clients and Advisors

For financial professionals, the topic of CD Replacement Month or CD versus Annuity is an opportunity to have conversations with your clients about their financial goals and risk tolerance. MYGAs, including the Axonic VantagePoint, can be a valuable addition to a diversified portfolio aimed at preserving capital and generating steady, tax-efficient returns.

Final Thoughts

While CDs may still have a place in some portfolios, they are no longer the default safe haven they once were. In today’s environment, your clients deserve options that protect their principal and reward them with higher, more tax-efficient returns.

Help your clients explore annuities, including the Axonic VantagePoint Fixed Annuity.

Learn more about today’s annuity landscape and the emerging opportunities by registering for AgencyONE’s Annuity Webinar on October 29 at 3:00 pm ET. Our featured speaker, Sal Sigleski, VP of Annuity Sales at BSMG and AgencyONE’s trusted annuity expert, will share his industry knowledge and help you navigate this evolving market.

Register for the webinar HERE, and please contact the AgencyONE/ BSMG Annuity team at 617.686.0697 for more information or to discuss a case.

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