If your CDs are maturing right now, my bet is that your answer is “yes!” According to Bankrate.com, a website dedicated to comparing rates for various money instruments across the country, the average rate for 1-Year CD this week is a whopping 1.13%. Even worse, a 5-Year CD’s average rate this week is 2.31%. Ouch!

And to add insult to injury, let’s take a glance at the “real” rate of return after taxes and inflation for this 5-Year CD assuming the same inflationary environment our country has averaged over the past decade and the same top tax rate as 2010.

Okay…so maybe it seems more practical to go with the 1-Year CD. So far this year our U.S. inflation has average 1.7%–so let’s run the numbers.

Who wants to earn a negative return—even though a CD is considered the epitome of short-term stability? On the other hand, not everyone has the stomach for the stock market. So what can you do? Here are just a few options:

Let’s begin with the one investment you are probably most familiar with: Annuities. Annuities can be an excellent tool to help protect your need of lifetime income. The problem is that annuities, like insurance, can be equated to Swiss cheese: tastes great, but it won’t be in every bite and usually works best when something else is put with it. There are so many bells and whistles offered by so many companies, it’s difficult to pigeon hole the holes in each annuity. One annuity may offer income protection, but still may risk inflation protection. Another may offer inflation and income protection, but provide no benefit to your heirs. One is variable; one is fixed; and yet another is indexed. Because there are so many options, I encourage you to work with an independent advisor when considering annuities. Independent advisors – unlike an insurance agent who works for a specific company selling that company’s particular products – can look at several companies and the bells and whistles of each of these companies to help determine which product is best for you.

Next, let’s look at REITs. First authorized by Congress in the 1960’s, “Real Estate Investment Trusts” offer the small investor the benefit of investing in a diversified portfolio of real estate. Imagine you had $20,000 to invest in real estate. Could you currently purchase property on the market for $20,000 which would provide income? Would it be a Class A investment? My guess is …probably not. Direct investments in real estate usually require large amounts of capital. A non-traded REIT, however, allows you to invest this same $20,000 into income real estate or real estate debt with several other investors, with the objective of providing you current income and the potential for capital appreciation. Non-traded REITs are a great diversification tool and can offer tremendous stability as they are not traded. I caution you, however, to take a look at the company offering the REIT and its underlying real estate very carefully with your investment advisor. As with any investment, there are good REITs and bad REITs.

Don’t forget the CD with a twist, known as a Structured Note. You probably know that CD’s (Certificates of Deposit) have not been the best tool to outrun inflation historically, yet they are principle protected. So…what if you could have a principle protected investment that can offer market-like returns? Guess what? You can. A structured note is a principal protected security whose payoff is derived from the performance of an underlying asset such as a stock, index, commodity, foreign exchange etc. But be careful, many advisors do not understand the inner workings of these hybrid securities. It is critical to understand the suitability, risks, and fees associated with each structured note. There may be stipulations that have to be met for certain payouts to be achieved.

There are many other alternatives to CDs and the stock market. It’s just a matter of deciding which ones are best for you. And, as always, you should read the offering materials with these investments thoroughly before making an investment. The solutions here are just a few of many available and are merely an overview. In fact, none of these might suit your situation. As it should be with any advisor, our goal has always been to fully understand an individual’s present financial situation, future objectives and goals, feelings regarding risk tolerance and market conditions, and family dynamics in order to provide very customized and relevant ideas to address the current market conditions.

Securities & Advisory Services offered through VSR Financial Services, Inc., a Registered Investment Adviser and Member FINRA/SIPC. Kennedy Financial Services is independent of VSR Financial Services, Inc.