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.


Protecting your wealth long-term is one of the strategies you can use in retirement. Furthermore, you can avoid losing your principal, even if the market takes a dive. This is especially important once you are in retirement. Why? Because in retirement, you have less time for your account to recover from a market drop. Indeed, investing in the market has its risks. Therefore, may retirees look for ways to keep their principal safe, regardless of market conditions.

As part of your retirement protection plan, Cornerstone Wealth & Tax Advisory offers products, such as annuities and life insurance. Certain types of annuities and life insurance can help you protect your wealth and provide income for life. For example, fixed index annuities (FIAs) and fixed annuities provide protection of your principal. The issuing insurance company agrees to protect your money, even if the market is down. Also, some of the product offerings come with a reasonable rate of return over time, too. For many retirees, an FIA is one way to protect their money, have a reasonable rate of return, and keep things simple.

grandparents sitting at kitchen table with grandchildren safe retirement income roseville ca

For some people, the stock market and fund markets are fine to have as part of their retirement. For others, the risk of the markets is just too great. While you were still growing your money and savings, the risks of the market may not have bothered you. Perhaps you have had the experience of seeing your retirement account go up and down. However, many people can no longer stomach this up and down ride once they are in retirement or close to it. For example, when the market took a dip in 2008, many retirees saw their savings drop dramatically. In 2020, there was another volatile market experience. For some people, this uncertainty is not worth the potential gain. Instead, you may be looking for a place to keep your money safe, while earning a long term reasonable rate.

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.

Scroll to Top
cornerstone wealth and tax advisors