Month: July 2020

Five Annuity Myths – And Why They’re Wrong

laptop-phone-stocks
Annuities Can Generate Reliable Income, Though They Often Get a Bad Rap

When you think about financial planning and the money you’ll live on in retirement, stocks and bonds probably come to mind. These market-based investments are often in the spotlight, and it’s true that they can help you grow your wealth. However, it’s also true that they may a number of downsides, one being that growth is unpredictable. This means that if you’re approaching retirement, or you’re already retired, one poorly timed downturn in the market could greatly set you back or even lead to you running out of money in retirement.

Since risk is inherent in investing, many people look for safer options. However, things like checking accounts or even high-yield savings accounts may not be the answer. Though they won’t lose money in a technical sense due to FDIC insurance, the value of your savings may still erode over time due to inflation.

So, what’s a savvy saver to do? One potential option is an annuity. If you’d like to save for retirement and create a guaranteed income stream – one that isn’t directly tied to the markets – a fixed indexed annuity offers an excellent option for consideration. Unfortunately, annuities get a bad rap because of misinformation, stereotypes, and myths. Below, we’ll tackle five of the most common reasons people hesitate to consider annuities as a viable retirement income option.

Continue reading

How Much Risk Do You Really Want To Take?

We believe the risk is simply a measure of how much you could potentially lose in the next stock market crash. Since 1929 the stock market crashes an average of 40 percent, every 7 years.

So as a retiree, or pre-retiree, are you willing to lose the same 40 percent to try and earn a higher rate of return?

If you have one million dollars saved for retirement, and you suffer a 40 percent loss, you’ve just lost 400,000 dollars and you now only have 600,000 dollars left. Can you afford this type of loss if you’re not able to take the same amount of income you planned from your retirement assets?

Continue reading

The Reality Of Saving For Retirement

You started saving money decades ago, so you wouldn’t have to worry about money during retirement. You saved, sacrificed, and budgeted carefully so that when you retired, you’d have no more worries about your money. How has this worked out for you?

You’ve saved a lot of money, but you’ve found you worry more about your money now than you ever did before. You find yourself worrying more and more about big stock market losses.

Continue reading

Why Did You Start Saving Your Money Decades Ago?

The reason you first started saving money was to create a dependable income flow that would replace your paychecks and last for as long as you lived, once you retired. You saved money while you were working so you wouldn’t have to worry about money when you retired. The big problem is, you may have incorrectly been taught you have to invest your assets for growth instead of for dependable, even guaranteed, lifetime income.

Did you invest your money to watch it go up and down on a daily basis?

Continue reading

10 Questions to Help You Choose a Financial Advisor

group
Be Intentional About Who Will Guide Your Retirement Planning

We all dream of a relaxing, carefree retirement that allows us to enjoy the fruits of our decades of hard work. However, this may be possible with proper planning. Whether you’re getting an early start or you’re nearing retirement age, it’s helpful to seek out the guidance of a professional financial advisor to ensure you’re taking the right steps to maximize your nest egg.

With so much riding on your retirement planning, it’s important to be intentional about the advisor you choose. You’ll want to find someone who you feel comfortable with, who takes the time to answer questions, and who can provide the type of advice and services you need.

With that in mind, consider the following ten questions as a suggested interview for potential financial advisors:

Continue reading

Safe Income Withdrawal Rates During Retirement

When you started saving for retirement, you were told you could save up a big pile of money, use the earnings for retirement income, and leave the same exact pile of money to your beneficiaries. This probably won’t happen, because the world and the financial markets have changed, along with Safe Income Withdrawal rates.

Continue reading