Dice Financial Services Group

1716 N. Sanborn Blvd, PO Box 790 Mitchell, SD 57301

Phone: 605-996-7171

Toll-free:  800-658-3603 


January/February 2019

When Safe May Be Risky

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Managing one’s retirement savings is like tending a garden; you nurture it so it grows. Then, in the fall, you may want to preserve that bounty to protect it from the elements. Likewise, you may want to preserve your retirement savings through investments* that are typically considered less risky, such as bond and money market mutual funds.** Investment risk, however, may not be the only risk your retirement accounts face. The following two major financial issues affect everyone, especially in retirement.

Even as the U.S. has been in a long period of low inflation, it was easy to notice how certain items — health care, for instance — rose in price more quickly than other items. Even if total inflation increased moderately at 3.5% annually, it would take less than 18 years for $100 of today’s dollars to lose half its value. If you consume services with higher inflation, your real dollars could shrink even more.

That’s why safe investing doesn’t ensure you won’t lose ground. While it’s true that banks offer FDIC insurance on interest-bearing accounts that covers up to $250,000 per depositor, per insured bank, insurance won’t cover the amount of purchasing power inflation consumes. So investing for some growth may make sense.

Another silent fact of life — taxes — can also shrink your retirement income. Depending on the amount of your retirement income, you may be taxed on all or part of it. More affluent taxpayers may also owe a surcharge on capital gains and pay higher premiums for Medicare Part B. You can account for some potential challenges, but it is more difficult to predict how taxes will change — except that they will change. One way to reduce your retirement tax liability (and increase your net income) is through a Roth IRA. If you meet income requirements, you can contribute up to $5,500 in tax year 2018 — you can do this until your tax filing deadline this year — and another $1,000 if you are at least age 50.

* Past performance won’t guarantee future results.

** You should consider the fund’s investment objectives, charges, expenses and risks carefully before you invest. The fund’s prospectus, which can be obtained from your financial representative, contains this and other information about the fund. Read the prospectus carefully before you invest or send money. Shares, when redeemed, may be worth more or less than their original cost.


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Securities offered through: Royal Alliance Associates, Inc. [ RAA], Member FINRA/SIPC. Insurance Services offered through Dice Financial Services Group. Advisory services offered through Dice Financial Investment Advisory, a registered investment advisor. 
Thomas J. Dice, Jerauld Garry, Michael LeBrun, Jacquelyn Johnson, and Jesse Tolsma are registered representatives of and offer securities products and services through RAA. In this regard, this communication is strictly intended for individuals residing in the states of AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, KS, MN, MO, MT, NC, ND, NE, NY, OK, OR, SC, TX, UT, VA, WA, WI, and WY.  No offers may be made or accepted from any resident outside the specific states referenced.
Thomas J. Dice, Jerauld Garry, Michael LeBrun, Jacquelyn Johnson, and Jesse Tolsma are also separately registered as investment advisor representatives under Dice Financial Investment Advisory, a registered investment adviser, offering advisory services in the state of SD.
Thomas Dice offers additional investment advisory services through RAA.
Fixed and/or Traditional Insurance Services offered through Dice Financial Services Group.
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