I read an article this week that was directed toward teachers who were revisiting their retirement plan “for when they are no longer lesson planning.” One section of the article in particular caught my eye because it addressed in a very simple way two topics that we always discuss with our clients who purchase Fixed Indexed Annuities, how you don’t lose your principal, and how you do make money. The article states “An FIA uses a unique formula to calculate annual interest based in part on the performance of a stock, bond or commodity index. While the index is used as a benchmark, you don’t actually invest in it—FIAs do not directly participate in any stock or equity investments. Different FIAs will also apply other limitations in determining how much of the index change to credit as interest. These limitations are called caps and participation rates.” Call us if you would like to discuss this further. We’re always here to help.
HARD TO UNDERSTAND YOUR EMPLOYER PLANS?
Sometimes, no matter how hard we try, it is difficult to understand if changes in our employer pension plans are actually advantageous to us. That’s why I thought you might want to read this week’s article taken from the Harvard Business Review. It explains a few concepts that might help you to put into perspective your employer’s retirement plan. It discusses as “more dangerous yet [is] the shift in focus away from retirement income to return on investment”. Call us if you would like to discuss options for retirement income. We’re always here to help.
RETIREMENT IQ
This week’s article takes a close look at “new research that shows a startlingly low retirement IQ” Staying informed and being educated are important and so I thought to share with you three tips to saving for retirement that are mentioned in the article: begin saving early, factor your savings into your budget, and contribute to your employer’s retirement plan. Call us if you’d like to discuss how to implement these ideas, and to discuss options that can help to incorporate guaranteed lifetime income into your retirement plan. We’re always here to help.
RETIREMENT PITFALLS
This week’s article tells us that “When it comes to retirement planning, one of the most important things you can do is to make sure you’re creating a portfolio that will provide you with lifetime income.” That may seem like a daunting task when interest rates are so low, but we have a few ideas that you may want to consider. Call us, we’re always here to help.
HEALTH CARE: CAN ANNUITIES HELP COVER THE COSTS?
This week’s article tells us that a new study confirms that “America’s senior citizens have their backs to the wall financially.” “With the threat of financial ruin so prevalent, seniors need to take concrete measures to protect their financial health. That’s not a luxury-it’s a necessity.” We agree, which is why we want to make sure that you are aware of the role that an annuity can play in helping mitigate high costs associated with health care for the elderly. Call us, we’re always here to help.
BABY BOOMERS AND LOW RETIREMENT IQ
This week’s article tells us ” While many Americans believe they’re retirement savvy, the average baby boomer has trouble answering even simple retirement questions. New survey data shows folks between 52 and 70 years of age have a significant gap in retirement knowledge, resulting in little action toward securing their golden years.” Thinking about retirement isn’t just for seniors. The good news is there are products like Fixed Indexed Annuities that can provide lifetime income. Call us if this is an option you would like to explore. We’re always here to help.
EDUCATION AND RETIREMENT INCOME
This week’s article tells us that “While some recent studies have identified a decrease in the return to education as the labor market changes, education has a proven impact on lifetime income.” Lifetime income has such an extraordinary impact on our lives, whether it be as young adults or as we near retirement age. We have some ideas for ways your savings can provide you with an income you can’t outlive. Call us, we’re always here to help you explore options you may not have thought about.
MAKING BETTER DECISIONS
Weekly we try to provide you with information that may help you in your retirement planning. Sometimes that information is obtained from studies conducted through the use of a survey. You may ask how important surveys really are. This week’s article, out of Princeton Research Associates, tells us that “Knowing what people think and do helps everyone make better decisions. Businesses can make better decisions by knowing what people want and what people do not want. Professionals, such as doctors, make better decisions because surveys provide them with critical information about what works and what does not.” Call us if you’d like to hear information we have about what might work for your retirement. We’re always here to help.
IDENTIFY SHORTFALLS IN YOUR RETIREMENT INCOME STREAMS
This week’s article reminds us to ask the question “Now that you have created a retirement expense budget and have created a retirement income stream, how do they match up? Do you have enough retirement income to cover your monthly expenses with inflation? If so, are you comfortable with a margin of error? If not, now is the time to do something about it before it’s too late.” Call us if you would like to review your retirement budget and income stream. We’re here to help you maneuver through the difficulties of coming up with a good plan that will work for you.
DO YOU DRIVE IN THE FAST LANE OR THE SLOW LANE?
“On your way home from work, do you drive in the slow lane or the fast lane? Each person has a different propensity for risk. When investing, this risk propensity can be used to determine the percentage of your portfolio that is exposed to equities.” This week’s article provides a questionnaire that helps to determine your risk profile. You may find this useful in deciding how much of your money you would like to put into a product where the principal is protected from market downturns. Call us when you’ve had a chance to take a look, we’d be happy to discuss what your profile suggests might be good options for you. We’re always here to help.