As you’re approaching (or in) retirement, your priorities shift. While you were working, you were probably willing to take some risks with your money in an effort for it to grow as much as possible. Now that you are retired or nearing retirement, you’re looking to put your money somewhere safe. Especially with the ups and downs of the stock market, the political unrest we currently have, and the uncertainty of international affairs, protecting what you’ve accumulated so it lasts for your whole life now becomes your primary concern.
Safe, Secure Money Vehicles
Some of the more well-known safe and secure places for your money include savings accounts, Certificates of Deposit (CDs), some money-market accounts, savings bonds, and even some interest-bearing checking accounts. But each of these safe havens also comes with a big downside: almost no interest.
As of this writing, most bank interest rates for savings account are somewhere around a measly .06% while some CDs and money market accounts are coming in around 1%. When you factor in an inflation rate, most of these “safe” places to put your money are LOSING money. The purpose of putting your money in a safe and secure place is so you don’t have to worry about losing your principle. However, because of today’s low bank interest rates, and the current inflation rate, most people are, in fact, losing money each year.
Is A Decent Interest Rate Possible?
Much of the work we do with folks involves helping them find ways they can keep their money safe, while still being able to live the comfortable lifestyle they were hoping for. Annuities are one way we’re able to do that. Some of these products offer people three or four times the interest rate they could get with other secure money choices such as CDs or savings accounts, but still have the protection of guaranteeing your principle.
Also, depending upon your situation, some insurance products can serve as protection for both you and your loved one, and your assets. Developing a plan that helps you achieve your personal goals while keeping your money safe and secure is paramount in all our conversations with clients.
One of the best things you can do for your financial future is to find out all your options. Meet with a financial advisor to go over your current situation, your concerns, and your goals. Let someone guide you through the options you have for safety and security as well as comfort in retirement. It may be easier than you think.
For a free Retirement Review Consultation with Pate and Smith, contact us at 919-736-9924.