Can grow in a good investment market.
For most of our pre- and post-retirees, protection of principal is a strong desire and an important financial objective. With volatility being the primary guarantee from the market, itās important that a portion of your money is in secure investments independent of the market. Protected assets may include cash accounts, bank CDs, fixed annuities, and fixed-indexed annuities. Consult your financial advisor to determine which investments are a best fit for you.
Whether in retirement or before, things donāt always go according to plan. Itās important to have liquidity in your financial plan for those unexpected expenses that catch you by surprise or even just for regularly occurring monthly expenses. Typical liquid assets are checking and savings accounts, stocks and bonds outside of your retirement account, or an unused line of credit that can be paid off quickly after its use.
Will help protect you from inflation.
In your lifetime, youāve seen the price of a candy bar go from pennies to dollars. With people living longer, retirement money needs to last longer and account for inevitable cost of living increases to keep up with the standard of living you desire.