Today, I want to point out an $8.8 trillion opportunity for you in your practice. As you may be aware, interest rates jumped up as of late, they've been kind of holding in, and they are potentially going to be declining here again in the near future. But that spike up made a flood of clients/investors pull money out of the markets, and push money into money markets and CDs. And as the Wall Street Journal reported, at the end of 2023, there was $8.8 trillion in CDs and money markets. This is unheard of, you don't see that kind of money going into those vehicles, especially in the rapid sense in which it did.
So this is a graphic from that same article. Look at the spike on the far right - that is recent times. And that is the spike up that took place in money markets and CDs. Money markets is the light blue and then they tack on the CDs and you're up to $8.8 trillion. That is a lot of what is referred to on Wall Street as as "dry powder". That money is getting antsy, that money is going to get invested back into the markets. It's just a matter of who's going to help the investors do that.
May I suggest it should be you.
--
The RARE Advisor is a business model supercharged by Recurring And Repeatable Events. With more than thirty years of working with and coaching successful advisors, host Mike Walters (along with other leaders in the industry), discusses what it takes to grow a successful practice. With the aim of helping financial professionals and financial advisors take their business to the next level, Mike Walters shares insights and success stories that make a real impact. Regardless of the stage of your practice, The RARE Advisor will provide thoughtful guidance, suggestions for developing systems and processes that work, and ideas for creating an authentic experience for your clients.
The RARE Advisor is also a podcast! Subscribe today via Apple Podcasts, Google Podcasts, or your preferred podcast listening service for easier on-the-go listening.
Author Info
Mike Walters is the Chief Executive Officer (CEO) of USA Financial, leading the firm since its inception in 1988. Mike is committed to...
Related Posts
Year-End Planning for Financial Advisors - Growing with Purpose
As the year winds down, it's time once again to reassess and realign your practice with your broader personal and professional goals, as we discussed in a previous article, "The Power of Planning: Why Financial Advisors Need a Yearly Game Plan."
Why Financial Advisors Should Hire a Coach
Let’s have a conversation, just you and me. Imagine you’re a financial advisor, someone who’s built a solid business, developed a loyal client base, and is doing reasonably well. But lately, maybe you’ve been wondering if there’s something more — some hidden potential you’re not tapping into. Perhaps you’re feeling like you’ve plateaued, or you’re getting bogged down by the day-to-day grind and losing sight of the bigger picture.
3 Key Considerations for Financial Advisors Hiring Support Roles
Financial advisors often debate whether or not they should hire someone to work inside of their practice. This typically comes up because they realize just how much time they're spending on something they're not passionate about - be it calendar management, file management, marketing, or the never-ending paperwork.