This week’s article was interesting to me because it referenced recent articles that suggest “retirees refrain from withdrawing any more [from their retirement account] than they are allowed under required minimum distribution rules” and it went on to talk about at least two problems with this approach: One of them is that few retirees “have saved enough to limit their withdrawals without taking a severe hit in their standard of living,” and the other is that “the retiree may end up having been too frugal in the best years of her retirement while leaving an excessive estate.” Call us if you would like to talk about this, as we have some ideas we think may help in your retirement planning.
HOW DO THEY WORK?
I read an article this week on “How do fixed index annuities work?” and thought to share it with you. The article explains that the money used to buy the annuity is invested by the insurance company and then the annuity goes into what is called the “accumulation phase”. This is where the annuity will “earn a fixed rate of interest that is guaranteed by the insurance company or an interest rate based on the growth of an external index.” With taxes being deferred on the interest until you receive the money, this means the money can grow faster. “After a period of time specified by your contract, you may then receive a lump sum, the money over a set period of time, or as income for the rest of your life.” Call us if any of these options work for your retirement planning. We look forward to speaking with you soon and are always here to help.
MISTAKES PEOPLE MAKE
I was surprised to read in this week’s article that “the average 65-year-old couple will pay $240,000 in out-of-pocket costs for health care during retirement.” This expense, which many retirees underestimate, highlights how important it is to “consider retirement products that can ensure lifetime income so you can be prepared for unexpected medical costs.” Call us if you are interested in hearing about some options that might help you attain this goal. We’re always here to help.
QUESTIONS ANSWERED
The first of six questions that this week’s article asks is “Am I investing in an annuity to save for retirement or generate guaranteed retirement income, or both?” Asking this question highlights the multiple roles that an annuity can play in your retirement planning, and answering the question will help you decide which annuity better suits your needs. Call us as you think through your plans, we are always here to help
SHORTFALL OR SURPLUS
“One of the biggest risks to a comfortable retirement is running out of money too soon.” This week’s article gives you the ability to determine your projected shortfall or surplus at retirement by letting you see how long your current retirement savings will last. If your results are disappointing or cause you concern, call us. We can tell you about some options you may not have considered that may help increase your retirement income. We are always here to help.
HAPPY BIRTHDAY
Did you know that 21 years ago Fixed Indexed Annuities were first introduced to consumers “as a key product for helping plan a secure, dependable source of income for retirement”?
Year in and year out, retirees seem to search for help in planning for a retirement they can look forward to, instead of worrying about out living their income. Call us as you begin your planning. We may have some ideas you haven’t thought about.
DIFFERENT OPINIONS?
It is human nature to want a second opinion, whether it be for an ailment we might have or in response to the question “What can I do to better prepare for my retirement?”. That’s why I thought this week’s article would be of interest to you. Written by the Insured Retirement Institute, a leading not-for profit organization that represents the “entire supply chain of insured retirement strategies”, the Institute’s “members are the major insurers, asset managers, broker-dealers and 150,000 financial professionals.” They “advocate for the sustainable retirement solutions Americans need to help achieve a secure and dignified retirement.” Read what they have to say in their review of 2015 and their outlook for 2016. Call us if you would like to dialogue about strategies that might work for you. We’re always here to help.
ONCE THE KIDS ARE AWAY, THE PARENTS WILL PLAY
While many couples find they have more disposable income when they become empty nesters, this week’s article talks about what often happens to that money. “It turns out that when the last of their children leave the nest, parents are spending substantial amounts of money, but not necessarily on preparing for retirement.” If you are an empty nester and want to discuss how to use your increased disposable income to help plan for your retirement, call us. We are always here to help.
ACCUMULATE MORE WEALTH
Most of us have read that females, on average, live longer than males. This week’s article takes this information and applies it to retirement planning. Discussing how women “need to accumulate more wealth to finance their retirement needs”, the author points out that recent studies have drawn into question the logic of taking increased risk to obtain higher returns necessary to produce that greater wealth. He goes on to discuss the role that fixed annuities can play in retirement planning. Call us if you would like to explore this topic more. We are always here to help.
WEALTH ACCUMULATION AND INCOME YOU WON’T OUTLIVE
This week’s article speaks about the emergence of Fixed Indexed Annuities (FIAs) “as a top choice for soon-to-be retirees due to their potential for wealth accumulation.” We have spoken in the past about the option of using FIAs for income that you won’t outlive. This article draws our attention to an additional consideration. Call us when you have a moment so that we can tell you our thoughts on how this fits into your retirement strategy. We look forward to hearing from you.