What to Do When a Client's CDs, Bonds Mature: Advisors' Advice

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High interest rates, while presenting a challenge for anyone looking to borrow, bring opportunities for investors and savers seeking better returns on their cash.

Consumers currently can put their money in certificates of deposit and select savings accounts yielding over 5% a year in interest, or invest in certain Treasury securities with rates over 4.5%.

When CDs and bonds mature, what should investors do next with those funds?

Fidelity Investments recently took on this question by posing several more specific questions for investors to consider.

We decided to ask financial advisors what guidance they provide to clients on this issue. We asked: How do you help clients decide what to do with maturing CDs and bonds? What options do they have and what do you advise them to consider in making the choice?

“They can reinvest in a similar CD or bond, replenish their emergency reserves in a savings or money market, increase their growth potential in equities, or pay down debt,” Daniel Masuda Lehrman, Masuda Lehrman Wealth LLC owner, noted in an email to ThinkAdvisor.

How exactly do clients make those decisions, though? And exactly what choices do financial pros suggest?

Here are seven responses we received from advisors. Their comments may be edited for clarity or length.

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