What is Safe Money?

Safe money investments refer to financial instruments and strategies that prioritize the preservation of capital and minimize the risk of losing money. These investments are typically favored by investors wanting stability as well as those beginning to enter into retirement.  

As you age, the need for secure retirement funds increase as there is less time to recover from market downfalls. Many smart retirees choose to transition to safe money investments during this time to ensure their retirement funds do not decrease or so that they do not outlive their money.

Safe Money Investments Can Offer Several Benefits:

1. Protection Against Market Volatility: Many retirees are concerned about the volatility of the market and the potential losses in their retirement savings. Safe money investments provide protection by offering a fixed or predictable return, with no loss of principal.
2. Potential for Guaranteed Income for Life: Some vehicles offer guaranteed income for the rest of your life, regardless of how long you live. This can alleviate worries about outliving your savings and provide peace of mind during retirement.
3. Tax Benefits: Growth within certain safe money solutions is tax deferred until you start receiving income payments, helping you manage your tax liability in retirement.
4. Diversification: Safe money investments provide diversification and complement other investments you may already have, such as stocks and bonds. It's important to balance your risk as you enter into retirement.
5. Customization: Safe money solutions come in many types and can be tailored to fit your specific needs. 
6. Estate Planning: You can choose a beneficiary for your investments, ensuring any remaining funds are passed on to your loved ones. 

Everyone's financial situation looks different and that is why it is important to meet with a professional advisor to educate you on all of your options. You can schedule an appointment with one of our advisors here.