Is retirement good for health or bad for it?
I read an article this week that I thought to share with you as it expressed something I’ve been reflecting on. The author, connected with Harvard, wrote that “For many people, retirement is a key reward for decades of daily work—a time to relax, explore, and have fun unburdened by the daily grind. For others, though, retirement is a frustrating period marked by declining health and increasing limitations”. In our business we find that one of those increasing limitations can relate to having less income in retirement. Call us if you are concerned about that. We might have some ideas that can help increase your income and reduce your financial limitations when you do retire. We’re always here to help.
Have you determined which is best for you?
You may have heard about annuities elsewhere, but we thought it useful to send you a link to a Yahoo Finance article that does what we think is a good job of explaining that “Fixed indexed annuities might be suitable for an investor who still wants to minimize risk but wants the potential to earn a higher rate of return.” Annuities are contracts you sign with an insurance company to pay a premium for guaranteed income later. If you are trying to determine which kind of annuity is best for you, give us a call and we can help explain some of the difference between the various kinds. We’re always here to help.
A bigger contributor to retirement security?
I read an interesting “framing paper” written by two learned scholars from Brookings Institution and Kellogg School of Management. The question they addressed revolved around the change in what they called the “retirement paradigm”. I thought you might like to read their paper. They discuss “the risk faced by retirees and offer tractable solutions to improve the American retirement.” One suggestion they make are “policies that can help expand the market and encourage, or nudge, people towards buying annuities.” Their rationale behind this ‘nudge’ is worth reading. Let us know if you have any questions, we are always here to help.
Optimism that Threatens
I thought to share with you this week’s article because it provided an abstract of a study done that concludes that “a disturbingly large number of investors think they are on a path toward a comfortable retirement, but they are unlikely to reach their destination due to their unrealistically optimistic growth forecasts for their retirement savings”. Call us if you are evaluating your retirement plan, we may have ideas for obtaining an income that will continue over your lifespan, regardless of what happens in the market. We’re always here to help.
LEAVING THINGS TO CHANCE
This week’s article hit the nail on the head when it said “Whether your retirement is 20 years away or two, it’s good to see you are not leaving it to chance. Retirement could last decades, so it’s smart to look into ways to grow and protect your nest egg for the long run. Fixed Indexed annuities (FIAs) can help make the next big thing possible.” Are you leaving things to chance? Call us if you’d like to get your nest egg back. We may have some ideas you haven’t thought of, and we’re always here to help.
THE RISKS AND PROCESS OF RETIREMENT
I came across the results of a survey conducted online of Americans ages 45 to 80 the purpose of which was to evaluate Americans’ “awareness of potential financial risks in retirement, how this awareness impacts the management of their finances with respect to retirement, and how Americans are managing the process of leaving the workforce.” The results are interesting and may help you better plan for your future. Call us if you’d like to review some options for income in retirement that you may not have thought of. We’re always here to help.
WHAT DOES THAT REALLY MEAN?
It is always important to understand what is really meant by the words used by someone trying to give you advice on your retirement planning. That is why we thought to share with you a list of some key terms, and to “encourage you to understand the most commonly used terms associated with annuities and financial planning.” Take a look at this week’s article and let us know if you have any questions. We’re always here to help.
THE NEXT BIG THING
I thought to share this week’s article with you when I read “Retirement could last decades, so it’s smart to look into ways to grow and protect your nest egg for the long run.” Decades is a long time, especially when you think that you most likely won’t be working during those years, and instead will look to fund your expenses and life style with monies earned and saved prior to that. The article went on to say “Fixed indexed annuities can help make the next big thing possible.” We agree. Call us if you would like to discuss how this product may help you in planning for your retirement. We’re always here to help.
DO YOU NEED A SECURITY BLANKET?
It is not difficult to understand why, as this week’s article reports “Americans routinely report anxiety about money, particularly middle-aged people,” especially when they begin to think about retirement. In this day and age where loss of jobs is a reality, and escalating expenses are a given, experiencing stress about the logistics of how we can be assured of having the money we need to pay our expenses in retirement ends up creating free-floating anxiety that is often difficult to contain. Call us if you’d like some help in coming up with solutions. We’re always here to help.
REPLACEMENT RATIO
Someone asked me the other day to explain to them what a “Replacement Ratio” meant and so I thought to share this with you. Typically the phrase refers to the percentage of pre-retirement income you will need to generate once you stop working in order to maintain the same standard of living you had while you were employed. The percentage is usually quoted as anywhere from 70% upwards of 90%, with high-earners having to rely more heavily on savings as opposed to social security. Take a look at this week’s publication and if you have any questions, give us a call. We’re always here and perhaps can help with suggestions of options that will give you a source of income in your retirement years.