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Retirement Savings

Two of the biggest financial concerns people have these days are, "Will I have enough in savings to retire on?", and, "Will my retirement income last the rest of my life?".

As important as these questions are, most of us aren't sure of the answers. Many of us are 'keeping our fingers crossed' and hoping for the best. In these uncertain times, we need to do more income planning and less income guessing.

A good way to start is to minimize the risk that our retirement savings are exposed to. There's a general 'rule of thumb' that suggests we subtract our age from 100; the remainder is the percent of our savings that could be exposed to risk. For instance, if our age is 65, we subtract that from 100 and get 35. So, 35% of our savings can be at risk while the other 65% should be protected from loss of principal and interest.

We can protect our savings from volatility and still achieve competitive returns. There are three common savings vehicles to choose from:

  1. Mutual funds
  2. Bank CD's
  3. Annuities
Retirement Savings

Mutual funds are not guaranteed and can suffer the loss of principal and interest, yet they offer the greatest potential return.
Bank CD's are guaranteed against loss of principal and interest (if held to maturity),yet typically offer the lowest returns.
Annuities, especially the remodeled indexed annuities, offer both a guaranteed minimum rate of return and upside growth potential without downside risk. Annuities are also the only product that grows tax-deferred in both qualified "IRA's" and non-qualified "regular savings".

Most people are not familiar with the new annuity products that are available. Those who take the time to look into this will find that annuities offer very competitive rates of return without the risk of losing principal or interest. Annuities can be a perfect balance between mutual funds and CD's.

Retirement Income

As we begin our retirement, we usually want at least a portion of our income (in addition to Social Security) to be guaranteed for the rest of our lives. We don't want to run out of money! Although mutual funds and bank accounts allow withdrawals, only annuities can guarantee an income that will never decrease and will be paid to us each month, no matter how long we live.

Annuity products have also become more flexible to allow us to turn this income stream "on" and "off" as our needs change. You can also be with one annuity company as your savings are accumulating and switch to a different company for the lifetime income stream.

To improve your financial security now and into the future, call or email me for insight into the most competitive annuity products with the biggest and safest companies.


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