As you get closer to your retirement, you are often looking for safer places to invest your money. Today, is it becoming increasingly harder for you to deal with the insecurity of your money in the stock market? Are you tired of earning low rates of return in money markets or certificates of deposit or your bonds? Well I understand your concerns.
Our vision of retirement of vacations by the beach, golfing during the weekdays, and time with our family and friends can, at times, seem a little cloudy when we compare those goals with the reality of our retirement savings. As we get older, we realize we must move portions of our savings to more stable investments to make our vision of our retirement by the beach more attainable.
What makes this so hard to accomplish in today’s climate is that with interest rates so low, certificates of deposit and bonds are not paying a high rate of return. With these rates as low as they currently are, it is almost like you are not getting anything in return for your investment.
Now as we get older, we typically re balance our retirement investments to move our money to these exact types of investments of fixed rates of return to better allow us to secure our retirement savings and the great quality of life we desire after we leave our careers. If you take a look at the table below, it shows some guidelines about what percent of your retirement investment should be in the fixed rate bucket depending on your age.
|DECADE||DOMESTIC STOCKS||FOREIGN STOCKS||FIXED RATE INVESMENT|
As you can see as you go from your 40s to 50s, the amount of money in your fixed rate investment bucket doubles and by the time you are in your 60s, you should have tripled your investment in your fixed rate portfolio. But most people don’t know how to accomplish this investment goal because they can’t find an appropriate investment that earns an acceptable return in today’s financial climate where cds and bonds produce such low rates of return.
Promissory notes on the other hand can produce stable, predictable, monthly rates of return that can fill-up your fixed rate investment retirement bucket and get you to retirement sooner at a rate higher than that of most typical fixed rate investments.
If you have questions on this type of promissory note investment, you can contact us here and we would love to talk to you about your plans.