Will You Be OK? Annuities, Retirement and You

The retirement years are the well-earned culmination of decades spent as a devoted professional. They are the reward at the end of work’s rainbow and the time during which adults finally get to enjoy their time. But how can any of that be true when you spend your retirement and the years leading up to them concerned about running low of money in retirement?

Re-Examining Post-Retirement Goals

One of the best ways to help secure the financial stability of your retirement is to define your financial goals while you’re still working and accumulating money. If your goals are to live a modest but comfortable retirement, then your retirement objectives will be different than if your goals revolve around taking vacations and moving into the “penthouse suite” in a seaside community. Understanding your financial retirement objectives in advance will allow you to determine your retirement goals accordingly.

Additionally, a clear picture of your future retirement income needs will help you choose the most appropriate products to grow your retirement income. For example, if income security and predictability are your highest priorities, then a fixed indexed annuity designed with a guaranteed* minimum income benefit** could help to both stretch your retirement income and deliver the predictability you desire.

Reconsidering Your Tolerance for Risk

It doesn’t matter what your retirement income goals are, if you choose products that don’t fit in your retirement portfolio you could end up with less than you need. Reassessing your tolerance for risk and making sure that it’s appropriate for your needs is a vital part in helping to secure your retirement income.

A Fixed Index Annuity can offer an interesting balance for individuals who want higher yields than traditional fixed products offer, but who also want safety and guarantees*. The index annuity offers a potential to earn interest based on market gains linked to the performance of a chosen index while also guaranteeing a competitive base interest rate.

Exploring Extenuating Circumstances

When most of us think about retirement, we think about the positive things: the free time, the relaxation, the ability to enjoy day on your own terms. What we often don’t think about are those uncomfortable events that can affect our loved ones. That’s why additional strategies, such as estate planning, are necessary in conjunction with retirement goals.

The fixed index annuity offers benefits for both retirement and estate planning. They can be structured to include cost-of-living increases and long-term care riders which increase the annuity’s benefit to help cover nursing home expenses. For estate planning, annuities can provide death benefits to heirs.** Should you decide to name a charity as your beneficiary, you may be able to set up a charitable remainder trust that provides a regular income to you for a set period of time, secures a decreased tax rate on the income, and gifts the remainder to the charity.

Your retirement can be great, but it’s going to take a financial strategy to get it there. Annuities often play an integral role in a well-structured retirement and estate plan. Contact us today to see how these tools can help make your retirement dreams a reality.

 

*Annuity 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.

**Annuity riders may be available for an additional annual premium that may provide additional benefits and income guarantees.