Where To Find The Best Retirement Products

October 17, 2014
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What Is The Best Financial Product For Your Retirement Needs?

We are in volatile times these days so protecting your retirement nest egg can be a daunting task. People are feeling a great deal of investing frustration today because of low bearing returns on banking products or taking on too much risk by being in the stock market.

There are basically 3 financial entities that can offer you various financial products with those being, banks, stock brokers and insurance agencies. Each offer different variations of products with risk that will appeal to different investors. To determine who offers the best product, you first need to understand what each offers.

Banks - Banks primarily offer ultra-conservation products such as CD's passport savings, checking, and money market accounts. I primarily recommend utilizing banks for parking money short term until you can determine what to do with it. Because CD rates are so low these days, there really isn't anything exciting about using banking products these days.

Stock Brokers - Brokers offer the other end of the financial spectrum to banks with offering products such as mutual funds, stocks, bonds, treasuries and ETF's to name a few. These products give you the potential for returns but also have risk associated with them. I recommend the "rule of 100" for these products. If you take the difference from a 100 and your age, this amount should be the max that you have invested in any product that you could lose your principal. As I type this, the market has been down 900 points in the past week-Yikes!

Insurance products - Insurance agencies offer what I call hybrid products which merge some of the guaranteed features of principal preservation but also allow you to receive market like returns. In addition, insurance products allow you to add riders and endorsements that pay a 7% guaranteed interest, home healthcare, lifetime income as well as bonuses. I recommend these products for people 50 and older as they are great products for preserving one's nest egg while maintaining higher than average returns.

To have your financial options reviewed, give the financial consultants at Southern Insurance Group a call or email for you detailed analysis.

Tom Johnson - Owner

[email protected]


352-243-9000 Ex.1011