Every retiree wants to know the answer to these two questions:

1) Is my money protected?


2) How do I know my money is protected?

In order to carefully answer those questions, let’s first examine the very important difference between investments and savings.

Investments: Investments are designed for growth accumulation, though the possibility of that happening is never guaranteed. They have the potential to rise in value just as much as they have the potential to lose value. Investopedia defines “investments” as “an asset or item that is purchased with the hope that it will generate income or appreciate in the future.”

Savings: Unlike investments, the primary purpose of savings is not for growth accumulation. Savings vehicles are safer than investments and are designed to protect your principal.

Once you enter retirement, your priorities need to shift, but that does NOT mean that you shouldn’t invest in the market. I know that a lot of articles you read suggest that you stay clear of the market in retirement, but that doesn’t necessarily have to be the case for you. There is just a different way you should go about it in retirement.

When it comes to investing, people’s #1 interest is how they can grow their investment. They want to know what type of return they will get on their investment, and are less focused on the safety of their money. If you’re going to put your money into investments, you know there’s a risk involved with it. People who place their money into investments while they’re still working are less concerned with receiving a reliable income from their investment. They already have a reliable income from their job, so they just want to see their investment grow, rather than provide them income that they don’t need in that moment.

That’s the problem with investing as a retiree, and the reason you have to approach it a little differently.

Investopedia defines an investment as something that is purchased with the “hope that it will generate income.” I want to emphasize the word “hope” here. In retirement, is it comfortable to wake up every day hoping to see a return on your investment and hoping that it produces adequate enough income to cover your basic living expenses at the very least?

It’s good to have hope, but unfortunately the mentality of having hope is not going to cover your living expenses in retirement. If you want to live your retirement confidently, knowing that you will never have to go a day worrying about generating income, growth accumulation will become a secondary thought and preservation will become the primary one.

I am not suggesting that investing in the stock market is a bad thing. Again, it isn’t. In fact, I recommend it for many people who are in the right situation. But focusing solely on growth accumulation is never guaranteed. It will NEVER guarantee you that consistent paycheck month in and month out, and in retirement you need guarantees. Focusing on preservation, however, will. Let me explain…

The #1 thing people think about when it comes to savings vehicles is the security of their money.

They want to know that the money they depend to live on in retirement is 100% safe and protected no matter what. On top of that, they want to lock in a guaranteed income stream that they cannot outlive no matter WHAT happens in the stock market. People focused on saving vehicles are less concerned with the return of their money as they are with what type of guaranteed income they can receive from it.

Well, what if I told you that you could have the best of both worlds? You can lock in a guaranteed income stream and also participate in the stock market. Better yet… that guaranteed income stream can INCREASE from the stock market!

What I mean by that is, you can put your money into an account that isn’t directly tied to the stock market, but participates in market gains when the market performs in our favor. And, when the market loses (which we all know can happen in the blink of an eye), your account doesn’t lose any value, at all. None. Your income just simply remains the same.

Of course, there are more details to this account that I would like to share with you. I can’t quite outline it in a blog post, though, so feel free to call my office at 1-352-561-4571 and I’ll tell you more about it. We can see if it’s a good fit for you, and, if it isn’t, we can look at other options that would be! Or, if you don’t feel like calling right now, just simply scroll up and schedule yourself on my calendar right now! Just look for the button that says, “Retirement Strategy Session” and pick a time that works best for you!

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