What is a CD and Why are they so Popular?

Chase Imberger • November 18, 2024

Definition of a Certificate of Deposit and why it might be valuable to you.


CDs have become the hot, new craze of the past year, but what exactly is a CD? A CD is short for a certificate of deposit. Essentially, this is an agreement between the bank and you. If you wait until the end of the agreement, you will get your full deposit back plus the interest on it. These agreements have a variety of ranges, from as short as 3 months to 20 years!


Here are some key benefits of investing in Certificates of Deposit:


Fixed Returns

Interest rate is fixed for the entire duration of the deposit. If you wait until the end of the agreement, you will get your full deposit back plus the interest on it.



Low Risk

CDs are considered a very low-risk investment because of the guaranteed interest that is attached to the agreement, as well as having FDIC insurance on them up to $250,000.



Flexible Terms

You can choose the duration of your CD based on your financial goals and needs. These agreements have a variety of ranges, from as short as 3 months to 20 years!



Higher Interest Rates

Offers higher interest rates than most savings and checking accounts to grow your money at a faster pace. The interest the bank gives you is calculated yearly and can be paid to you monthly, quarterly, semiannually, or yearly.


CDs can be a very integral part of a person’s financial plan by creating fixed income and protection of principle. Adding these 2 aspects to your financial plan could be a huge benefit today, or years down the road. If you would like to learn more about how we can integrate CDs into your unique financial future, give us a call.




The Gasaway Team


7110 Stadium Drive

Kalamazoo, MI 49009

(269) 324-0080

FAX (269) 324-3834



This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations.


Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results.


Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807.


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Turbulent times can bring turbulent markets. Many factors cause chaotic swings in the investing world including housing, political elections, and international instability. Despite the financial queasiness this can have, experts consistently have one piece of advice for investors: stay calm and stay the course. Maintaining a long-term investment strategy can help weather the storm of a volatile stock market, whereas reacting irrationally or panicking is the last thing investors should do. History tends to repeat There are a few ways to keep nerves at bay amidst a sea of daunting headlines. First, a historical review shows that market fluctuations are normal. This should serve as a comforting reminder during unstable conditions. According to Fidelity, “...while market downturns may be unsettling, history shows stocks have recovered and delivered long-term gains.” 1 While no one can predict the stock market with absolute certainty, the significant crashes of the last century all saw periods of recovery. For example, after the 2008 market crash, the recovery began almost immediately and achieved an eventual increase of 178% in 5-year returns. 2 These past events reinforce the importance of focusing on long-term financial strategies and goals, not short-term fluctuations. The markets will have bull and bear runs which need time to play out without trying to anticipate short-term trends. However, past performance is no guarantee of future results. Don’t try to catch a falling knife Another potential mistake that investors can make is to stop saving during a market downturn. A popular way to continue savings momentum when nerves are being tested is dollar-cost averaging , or in other words, investing a fixed amount on a regular schedule (e.g., per pay period) that generally results in buying more shares when prices are low and less shares when they are high. Dollar-cost averaging is a stabilizing approach. It can take away some of the fear of timing risk and become less of a system shock than lump sum investing. However, this strategy does not ensure a profit and does not protect against loss in declining markets. You need lemons to make lemonade Downturns are a perfect time to consult with a financial professional or investment advisor to review different strategies and also rebalance your portfolio. It might be time to look at investments 1 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025. 2 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025. that have lost value, which can potentially help manage risk exposure and provide an opportunity to reposition the portfolio for recovery. Another possibility is to consider a Roth conversion. If your plan allows for a Roth conversion - moving money from pretax dollars to Roth dollars - then a downturn could help. A conversion in a downturn might result in a lower tax bill for the same number of shares sold, and then the individual can experience the benefits of a Roth account, allowing qualified distributions of future growth to be tax free.3 Market downturns are a part of any investing lifecycle so it’s best to keep a steady hand, consult with your advisor and consider all options so you can weather through this market cycle - and the next one. Information provided herein is not, and should not be regarded as, investment advice or as a recommendation. Investing involves risk, including potential loss of principal. ________________________________________ The Gasaway Team Gasaway Investment Advisors 7110 Stadium Dr., Kalamazoo, MI, 49009 Email: info@gasawayinvestments.com Phone: (269) 324-0080 Website: www.gasawayinvestments.com This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. ©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute without permission. ________________________________________ Content is for educational purposes only and should not be construed as a solicitation or offer to sell securities or provide investment, tax, or legal advice. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Always consult with a qualified financial advisor before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Advisor Public Disclosure Site https://adviserinfo.sec.gov/firm/summary/123807 . 3 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025.
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By Chase Imberger January 16, 2025
Retirement is a significant milestone, and planning for it is crucial to build a comfortable future. At Gasaway Investment Advisors, we believe that everyone deserves the opportunity to retire with confidence. Why is Retirement Planning Important? Retirement planning is essential for several reasons: Financial Security: It helps you ensure that you have enough money to cover your expenses in retirement. Peace of Mind: Knowing that you are financially prepared for retirement can reduce stress and anxiety. Lifestyle Choices: A well-planned retirement allows you to pursue your passions and enjoy your golden years. How Much Do You Need to Retire? The amount of money you need to retire depends on various factors, including your desired lifestyle, expected expenses, and anticipated income sources. A common rule of thumb is that you'll need 70-80% of your pre-retirement income to maintain your lifestyle in retirement. However, this can vary depending on individual circumstances. Key Strategies for Retirement Planning Start Early: The earlier you start saving, the more time your investments have to grow. Maximize Employer Contributions: Take advantage of employer-sponsored retirement plans like 401(k)s and 403(b)s. Diversify Your Investments: Spread your investments across different asset classes to manage risk. Review and Adjust Your Plan Regularly: As your circumstances change, reassess your retirement goals and adjust your investment strategy accordingly. Gasaway Investment Advisors' Approach to Retirement Planning At Gasaway Investment Advisors, we take a personalized approach to retirement planning. We work with clients to assess their financial situation, set realistic goals, and develop a comprehensive retirement plan. Our services include: Retirement Needs Analysis: We analyze your current financial situation, future expenses, and income sources to determine how much you'll need to retire comfortably. Portfolio Management: We manage your retirement investments to help you achieve your long-term goals. Social Security Optimization: We help you maximize your Social Security benefits. Tax Planning: We can strategize with you to try and minimize your tax burden in retirement. Insurance Planning: We can help you create a comprehensive insurance plan based on your needs. Take Control of Your Financial Future By working with a financial advisor, you can gain valuable insights and make informed decisions about your retirement savings. Remember, the key to a successful retirement is to start planning early and stay disciplined. We’d love to have you join our virtual workshop on Retirement Planning on January 21 st at 5:30 pm and learn more! Contact Gasaway Investment Advisors today to schedule a consultation with an advisor and start planning for your future. The Gasaway Team 7110 Stadium Drive Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834 The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .
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