ASSET PROTECTIONBecause the market does not provide security, you may want your financial strategies to include some guaranteed* income products. For example, annuities, which are insurance products with guarantees,* can provide a source of supplemental income throughout your retirement.
Twenty-first century asset protection calls for more than just strategic asset allocation. Including products like annuities in your retirement income strategy can help protect* your money from declines due to market losses. Diversifying your retirement assets among a variety of vehicles — both through insurance products and investments, depending on what is appropriate for your situation — may offer you the best chance of meeting your retirement income goals throughout your lifespan. |
* Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Your investment advisor is not permitted to offer, and no statement contained herein shall constitute tax or legal advice. You should consult a legal or tax professional on any such matters.
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*Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.
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ANNUITIESToday, the majority of the burden for retirement income seems to have shifted to the individual. For this reason, you may want to consider a guaranteed* fixed income component to your retirement strategy. In short, adding an annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed.* An annuity is a contract you purchase from an insurance company. For the premium you pay, you receive certain fixed and/or variable interest crediting options able to compound tax deferred until withdrawn. When you are ready to receive income distributions, this vehicle offers a variety of guaranteed* payout options.
Most annuities have provisions that allow you to withdraw a percentage of the value of the contract each year up to a certain limit. However, withdrawals will reduce the contract value and the value of any protected benefits. Excess withdrawals above the restricted limit typically incur “surrender charges” within the first five to 15 years of the contract. Because they are designed as a long-term retirement income vehicle, annuity withdrawals made before age 59½ are subject to a 10 percent penalty fee, and all withdrawals may be subject to income taxes. |
IRA & 401k ROLLOVERSWhen you change jobs or retire, there are four things you can generally do with the assets in any employer-sponsored retirement plan:
Rolling over from one qualified plan to another qualified plan allows your money to continue growing tax-deferred until you receive distributions in retirement. We can help you determine if a rollover is the right move for you. If you decide to cash out of an IRA, we can help you find suitable vehicles to help you reach your retirement income goals. |
To schedule a time to discuss your financial future and the possible role of insurance or investments in your financial strategy, contact us at lanefinancialstrategiesllc@gmail.com or call us at 804.639.5259 today!
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1 Insured Retirement Institute. 12/2015. “State of the Insured Retirement Industry: 2015 Review and 2016 Outlook.”Accessed 11/11/16 2 *Guarantees are backed by the financial strength and claims-paying ability of the issuing company and may be subject to restrictions, limitations or early withdrawal fees. Annuities are not FDIC insured. Your investment advisor is not permitted to offer, and no statement contained herein shall constitute tax or legal advice. You should consult a legal or tax professional on any such matters. |
RETIREMENT INCOME STRATEGIESRetirement income strategies are not just for the wealthy. As retirement nears, the traditional strategy has been to move growth-seeking products to more conservative, fixed-income products. According to a recent study, for a married couple age 65 there is now a 50 percent chance that at least one spouse will live to age 93 and a 25 percent chance at least one spouse will live to age 97.1 This means that you may need to plan for your retirement savings to potentially last 25 to 30 years.
One drawback to a longer life is the greater possibility of outliving your savings — creating all the more reason to develop a retirement income strategy designed to last a longer lifetime. Only 27 percent of baby boomers report being confident their savings will last throughout retirement.2 A significant loss in the years just prior to and/or just after you retire could negatively impact the level of income you receive over the course of your life. In fact, if a loss occurs earlier in life, there is also the chance that you may have more time to recover (versus a loss occurring later in retirement). Why? Simply because a smaller pool of assets is left to sustain you throughout your retirement years and your assets may not have as much time to recover. We can help you design a guaranteed* retirement income strategy that incorporates insurance and annuity vehicles to create opportunities for long-term growth as well as guarantee* income throughout your retirement. |
LONG-TERM CAREAs the oldest baby boomers begin to wind through their 60s, one of the biggest concerns may not be outliving income, but outliving good health.
At-home care services average $20 per hour, and assisted living facility costs average $3,628 per month.1 Does your retirement income strategy account for this kind of possibility? Would you be prepared for twice that amount as a married couple? Considering that you could have to reduce your financial means before Medicaid will pay for long-term care and neither your employer group health insurance nor major medical insurance will cover long-term care, you may want to consider planning ahead for these potential expenses. We can help evaluate your situation and determine if purchasing a long-term care insurance policy may be the right move to help you feel confident in your financial future. 1 Genworth Financial. April 2016. “Genworth 2016 Cost of Care Survey.”Accessed Aug. 31, 2016. |
As the oldest Baby Boomers begin to wind through their 50s, one of the biggest concerns may not be outliving income, but outliving good health.
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Life insurance isn't for those who have died—it's for those who are left behind. When shopping for life insurance, consider needs such as replacing income so your family can maintain its standard of living, as well as paying for your funeral and estate costs.
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LIFE INSURANCELife insurance isn’t for those who have died — it's for those who are left behind. When shopping for life insurance, consider needs such as replacing income so your family can maintain its standard of living, as well as paying for your funeral and estate costs. A general rule is that you may want to seek coverage between five and seven times your gross annual income. As far as the various types of policies go, they can generally be placed into one of two categories: term and permanent.
Term insurance generally provides coverage for a specified period of time and pays out a specified amount of coverage to your beneficiaries only if you die within that time period. In a level premium term policy, you pay the same amount of premium from the first day of the policy until the term ends. A permanent insurance policy, on the other hand, will stay permanently in effect for the rest of your life, as long as premiums continue to be paid. |
THE NEED FOR SPECIALIZED PLANNING SERVICESAccording to recent research, there are three reasons why 60% of people will have to make substantial, undesired lifestyle changes during retirement: |
Sources:
Point 1: U.S. Dept. of Health and Human Services, 2011, and The Institutional Retirement Council Point 2: Putnam Investments – “Pursuing Retirement Success”, June, 2010 Point 3: U.S. Bureau of Labor Statistics Monthly Labor Review, December 2012 |
