Compare Our CD Rates www.edwardjones.com
Bank-issued, FDIC-insured
2.55 2.75 % 3.00 %
FINAN
CIAL FOCUS
Minimum deposit Managing Carefully % APY* Withdrawals $1000 Can Protect Retirement Income
6-month
Minimum deposit This article was written by Edward Jones for use by your local Edward Jones $1000 Financial Advisor Ken Wood
1-year
T
2-year
APY* APY*
Minimum deposit $1000
hroughout much of your working life, of your retirement. For example, if you are in your you contribute to your 401(k), IRA and mid-60s, you could start at a withdrawal rate of other investment accounts to help ensure about 4 percent, which also assumes an increase in a comfortable retirement. However, withdrawals (a “raise”) of approximately 3 percent * Annual Percentage Yield (APY) effective by inflation. By starting at once you do retire, you’ll need to 12/18/18. shift your focusCDs eachoffered year to incorporate somewhat from building these investments to a more modest withdrawal rate, you would have Edward Jones are bank-issued and FDIC-insured up to $250,000 using them—in other words, you’ll have to start some flexibility for those years in which the market (principal and interest accrued but not yet paid) per depositor, per withdrawing from your portfolio to meet the costs drops significantly. And you could increase your insured depository institution, for each account ownership of living. How can you be sure you’re not taking out chancescategory. of extending the lifetime of your portfolio. so much that you risk outliving your resources? Please visit www.fdic.gov or contact your financial advisor for has been committed to providing But even if you started out with a conservative pricerate, change. CDto review it during periods of nalized service toadditional individual information. Subject First of all, to you availability need to establishand a proper you may need withdrawalrate rate—the percentage portfolio’s extreme market movements. If, for instance, your values are subject to interest risk suchof your that when interest rates value needed for one year’s worth of retirement portfolio were to fall 20 percent in one year, the rise, the prices of CDs can decrease. CDs sold to maturity, expenses. Ideally, if you If were to stickare with this rate,prior 4 percent you had planned to withdraw would your portfolio would last as long insurance as you do. Your does actually become 5 percent because you’re taking out the investor can lose principal value. FDIC not cover withdrawal rate should be based onnot a number the amount youYields had planned, but now it’s from a losses in market value. Early withdrawal may be permitted. of factors including your age, amount of assets, smaller pool of money. If this happens, should you y and face-to-face meetings quoted are net of all commissions. CDs require the distribution portfolio mix and retirement lifestyle. A financial consider makingof an adjustment? professional can help determine the rateCDs that’s offered through interest and do not allow interest toyou compound. To learn why consolidating There’s no easy answer. The amount you withdraw right for you, but it’s important to understand that Jones are issued by banks and thrifts nationwide. Allportfolio CDs has sold edwardjones.com ent Philosophy from your a major impact on how long yourEdward retirementMember accounts to Ken Wood this rate is a starting point, since you will want to SIPC Financial Advisor by Edward Jones are registered with the Depository Trust your money lasts. You’ll improve your likelihood of Corp. (DTC). review your withdrawals each year to ensure they focuses onEdward quality investments Jones makes sense, 477100 Highway 95 Suite B success if you are able to be flexible and make some are still appropriate. Ponderay, ID 83852 spending adjustments—spending less on some of 208-255-2613 call my office today. If the financial markets performed smoothly and your discretionary items, for example, or not taking predictably, year in and year out, any adjustments a “raise” until your portfolio recovers. Importantly, you make would likely be more modest. But, as your financial advisor can help run different ed to your individual needs To learn more, call today. you know, and as we’ve all been reminded the last scenarios to determine if adjustments need to be several months, the markets are neither smooth made to ensure you remain on track. nor predictable. Rather than constantly trying In any case, think carefully about your withdrawal to change your withdrawal rate and spending in rate. By managing it carefully, and reviewing it response to movements in the markets—which may www.edwardjones.com over time, you can take greater control over your be challenging if you have grown accustomed to a retirement income. Member SIPC certain standard of living—you might be better off adopting a more conservative rate at the beginning te B
tand
itment.
You’re Retired. Your Money Isn’t.
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Call oryour visit your local financial advisor today. Make Make your financial Ken Wood financial future a Financial Advisor 477100 Highway 95 future a priority. Suite B Make your Ponderay, ID 83852 Ken priority. Wood financial 208-255-2613 future Ken Wood a Financial Advisor priority. Financial Advisor .
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477100 Highway 95 Suite B Ponderay, ID 83852 208-255-2613 www.edwardjones.com 8
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