Who is Market Trust for and where does it fit in your retirement plan?  

Market Trust is redefining retirement planning. In this blog, we break down whether or not Market Trust is for you.   

Market Trust helps make up for lost time safely through a conservative investment program that achieves principal protection based on a five-year term⁴ and a variable APY** of 13.82% using S&P 500 Risk-Controlled Portfolio historical performance. 

An APY** that high is tempting for anyone with an ounce of financial knowledge, but is Market Trust the right program for you?  

Short answer, Market Trust is for you if you are 55 years old or older, if you’re comfortable with a 5-year term, and if you have conservative, longer-term investment goals. 

Why 55 years old or older?  

Ultimately, it’s due to a guaranteed interest rate product that makes up a part of Market Trust, which comes with penalties if withdrawn before you’re 59.5 years old and the 5-year term is completed. Being 55 years old or older is a major factor in considering whether Market Trust is a good fit for you or not because at the end of the five-year term, assuming you started it at 55, you’d be over the minimum age requirement of 59.5 years old to withdraw without penalties². Additional considerations include:  

• Are you comfortable with an investment of five years or more? 
• Are you comfortable exchanging limited liquidity during the five-year period for a higher potential APY**? 
• Do you intend to use Market Trust for retirement savings? 

Retirement planning is a significant endeavor, and as individuals approach their 50s, it becomes increasingly crucial to assess and refine their financial strategies. Retirement planning at this stage requires careful consideration of savings, investments, expenses, and potential income sources. 

Here are a few additional considerations to help you navigate this important phase of life with confidence and security: 

Assess your retirement savings 

According to the U.S. Department of Labor, only half of Americans have calculated how much they need to save for retirement as of Sept. 2021. As you near retirement, it’s vital to assess your current savings and determine if you’re on track to meet your financial goals.  

How do you assess your savings? First, evaluate your retirement accounts, such as 401(k)s or IRAs, and calculate the projected income they may generate. If needed, you may want to consider consulting with a financial advisor to analyze your savings strategy and make any necessary adjustments. 

If you do find yourself short of your financial goals for retirement, then Market Trust may be a wise choice for you. Adding Market Trust to your retirement plan guarantees your initial deposit amount if held to maturity, while giving you a chance to grow your funds. Additionally, any Market Trust investment yield is taxed as long-term capital gains.² 

Create a detailed budget 

Developing a comprehensive budget is crucial for effective retirement planning. AARP suggests you track your expenses diligently to gain a clear understanding of your spending habits and identify areas where you can adjust. Consider factors such as healthcare costs, housing expenses, and lifestyle choices. A budget will help you determine how much you need to save and establish a realistic plan to meet your retirement goals. 

Maximize contributions to retirement accounts 

If you are 50 years old or older, you can take advantage of catch-up contributions offered by retirement accounts. According to the IRS, annual catch-up contributions up to $7,500 in 2023 may be permitted by these plans: 

• 401(k) (other than a SIMPLE 401(k)) 
• 403(b) 
• SARSEP 
• Governmental 457(b)  

These additional contributions can help you accelerate your savings and make up for any previous gaps. By maximizing your contributions to retirement accounts, such as 401(k)s or IRAs, you can potentially increase your nest egg and enjoy a more comfortable future. Though, these plans don’t guarantee steady income streams since they are linked to market performance. 

In contrast, the Market Trust’s guaranteed interest rate product ensures your entire principal, as well as a steady income stream, if held for the full term and withdrawn after you’re 59.5 years old. 

Diversify your investment portfolio 

Diversification is crucial for managing risk and potentially increasing your investment returns. As you approach retirement, Forbes’ Councils Member Stacy Francis advises you to reassess your investment portfolio and ensure it aligns with your risk tolerance. Consider a mix of stocks, bonds, and other asset classes to balance potential returns with stability.  

You can further diversify your investment accounts themselves and we suggest including Market Trust. The portfolio portion of Market Trust is the S&P 500 Risk-Controlled portfolio, which follows the S&P 500 Index that holds the 500 largest publicly traded companies listed on stock exchanges in the United States. By combining Market Trust with other retirement accounts focusing on different asset classes, you maintain diversification, while also resting easy because your principal is guaranteed when held to the full term.  

Planning for retirement after 50 requires a focused and strategic approach. By assessing your savings, creating a budget, maximizing contributions, exploring long-term care insurance, diversifying your investment portfolio, and exploring options like Market Trust, you can better position yourself for a financially secure retirement.  

Remember to consult with financial professionals and trusted sources for personalized advice tailored to your unique circumstances. With these tips in mind, you can take proactive steps towards achieving your retirement goals and enjoying the years ahead with peace of mind.