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CDs

SG Long & Company offers access to an inventory of thousands of brokered CDs from hundreds of United States banks on a daily basis. These CDs offer the same FDIC insurance protection that consumers have grown to trust in their local banks. Simply put - if the issuing financial institution fails, FDIC insurance protects the investor from loss of principle up to $1000 per CD. A few notable advantages of brokered CDs (vs. conventional CDs) warrant a more in depth explanation.

Unlike conventional CDs, brokered CDs offer enhanced liquidity benefits. With conventional CDs, your money is locked up for a predetermined period of time depending on the arrangement made with the local bank. An early withdraw often triggers penalties or loss of accrued interest. Unforeseen emergencies may necessitate the need to access the funds in the CD earlier than was anticipated. With brokered CDs, this liquidity limitation is mitigated to some extent due to the fact that brokered CDs trade on a secondary market. If an investor needs access to the cash earlier than was initially anticipated, your SG Long & Company Financial Advisor can simply sell the CD to another investor - without penalty or loss of interest. Many of our clients appreciate this flexibility.

Another important distinction is that brokered CDs usually pay cash interest payments on a monthly, quarterly, semi-annual or annual basis. Unlike conventional CDs, which usually only pay interest @ maturity, brokered CDs generate periodic cash flows which the client can reinvest or use for other purposes. If you're looking for an insured investment in which to place cash for a precisely predetermined amount of time - brokered CDs offer a potentially attractive option. Due to the vast array of brokered CDs that we have access to, SG Long and Company's Financial Advisors can precisely target the date on which you will need access to the funds.

Brokered CDs are sold in increments of approximately $1000 per CD. Therefore, they are not an appropriate investment for individuals looking to invest amounts smaller than $1000. The FDIC insures each individual CD up to $1000 to a total of $100,000 ($250,000 for a limited time). If you purchase a brokered CD for greater that $1000, the amount of your principle investment over $1000 is not insured by the FIDC - and subsequently is at risk if the issuing bank becomes insolvent. Please contact your SG Long & Company Financial Advisor for a more detailed explanation of the advantages and risks of brokered CDs.