Safe Retirement Income
When you get ready to retire, you may want to look at some safe retirement income choices. In fact, if you are already in retirement, finding a safe place for your money might be really important. We find that when people are still working, their willingness to take risks is higher. But, as we enter retirement, sometimes our priorities shift. You may be ok with risking a small portion of their retirement in investments. However, it is likely that you have some money that you want to keep safe from market loss. At Cornerstone Wealth & Tax Advisory, we help you develop a plan for a safe retirement income.
Do Annuities Offer Safety?
Some annuities, such as a fixed annuity or a fixed indexed annuity (FIA), offer safety of principal. These products are contracts with an insurance company. The company guarantees your principal protection, after certain conditions have been met. Basically, you allow you money to grow with the company for certain number of years. Once that time period is up, you can start to get an income for life. Importantly, your principal balance is protected by the insurance contract. So, no matter what happens in the stock market, your money is promised safe via your contract.
Other safe money options might include keeping up to $250,000 in a bank savings account. The FDIC is an insurance that protects your savings. However, the issue here is the limited interest that can be earned. Also, there is a cap on how much money is kept safe by the FDIC. With an FIA, you can keep much larger amounts in those products. In addition, probate may be much simpler with an annuity. Also, if you keep your money in the bank, you pay taxes on the interest each year. With an FIA or fixed annuity, you only pay taxes once you take the money out. Additionally, FIAs may offer a steady lifetime income. Contact us to learn more about safe retirement income options that may work for you.
Before anything else, we believe in safety. Your retirement principal should be kept secure. At Cornerstone Wealth & Tax Advisory, we work with our clients to craft a simple plan. Next, we show you how you can create a lifetime income, without risk of losing your principal in the market. Find out more by attending one of our seminars or webinars today.