Why more retirees are using CD alternatives without Losing Safety on Their Accounts

Retirees in the Northwest are using alternatives that produce a much better outcome than current Bank Certificates of Deposit, without losing the safety factor. Every time an individual comes into contact with a new financial product or account, they try and over complicate the situation which can hinder their retirement outcome. No matter what the scenario, at retirement age, each individual must be looking at products that provide Safety and Guarantees.

There are three main institutions that live in this world of Guarantees and Safety

  • Banks: offer individual Savings accounts, Certificates of Deposit, and Money market accounts
  • Government: offer Treasury Bills, Treasury Bonds, etc.
  • Insurance Companies: offer Fixed Annuities

All three of these entities share the common characteristics of making sure your money is safe and has tiers of backing in case that individual company you have utilized for your account goes under, you do not lose your money. Essentially your principal is guaranteed, your duration is guaranteed, and your interest being earned is guaranteed.

When dealing with the individuals either currently in retirement or approaching retirement within 15 years, we try to understand what their specific goals were to utilize Bank CDs. There are three main questions that help us identify their reasoning:

1) Is this supposed to be meant for retirement income either now or at a later date?

2) Is there a long term care plan in place -> and/or

3) Are you using this money to maximize inheritance for your beneficiaries (family members, charitable, etc.)?

When identifying that the money is being used for retirement income, we offer them alternatives to maintain the same safety factor (as displayed in the world of the known) but eliminate inflation risk.

We utilize proprietary relationships established through Stoneway Financial Services to make sure their money is:

  • Safe (use top rated companies, with tiers of safety backing in case of insolvency)
  • Fixed (obtain fixed compound growth on income accounts annually)
  • Maximize income without losing control of funds
  • Allow your accounts to participate with upward market movements, without having accounts become hindered with downward market loss (when the market goes up you go up, when the market goes down you don’t go down)
  • Guarantee an income stream that the owner can never outlive, provide a worry-free retirement
  • Access to the funds for long term care expenses and leave the remaining balance to beneficiaries.

So when purchasing your next Bank CD, you need to ask yourself what is the purpose of this money? If the purpose correlates to the three questions above, you should contact us immediately so that you will have peace of mind understanding all options available and leverage your retirement dollars properly!

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