Retire Confident
Start Saving.
The most important step when planning for retirement is to develop the habit of saving a portion of your income.
Start by developing a budget and then look for ways to eliminate destructive and consumptive expenses. Redirect these funds into a savings account at your bank. Then develop the habit of paying yourself 10% of your paycheck and put this money into savings before you pay for anything else. Finally set a goal to live on only 80% of your paycheck. As you become disciplined in your spending, continue to increase the amount that you pay yourself and redirect those funds into your savings.
Continue this until you have at least 6 months of your household expenses saved.
Increase Savings.
Once the habit of savings has been established you can begin to have your money work for you.
With 6 months of expenses saved in a bank, the new goal is to save, 10-12 times your desired annual income by the time you reach retirement age. To accomplish this you'll need compound interest working for you. This begins by looking for alternative places to save money. Ideally, look for products that pay higher interest rates, offer additional benefits, and allow access without large penalties.
A properly designed Tax-Free Savings Plan addresses each of these issues and sets you up for success in the future. When properly funded and managed this plan eliminates contribution caps, early withdrawal penalties, and loss that comes from market fluctuations. In addition when properly funded, you'll create a lifetime income stream that's 100% income tax-free which you'll be able to turn on at any age. Oh, and if you happen to die before you reach retirement, a death benefit will be paid to your family in addition to the money you've saved.
Other Products that offer higher interest rates, and still allow access without large penalties. include: a Certificate of Deposit (CD), Cash Value Life Insurance, Multi-Year Fixed Annuity, & Savings Bonds.
You may also consider options such as an IRA/Roth IRA, 401(k), Brokerage Account, Business, or Real Estate. These products are considered high risk and can result in the loss of some or all of your savings. However, they may also generate the highest rates of return. It is wise to do your home work, never blindly invest and never put all your eggs in one basket.
Protect Savings.
Past performance is not an indicator of future results, which is why smart savers protect their savings.
As you near retirement, recovering from a loss, especially a large loss becomes very difficult. A loss of 10% requires a gain of 11.1% and a loss of 25% requires a gain of 33.3%, just to break even. Smart savers make adjustments to the amounts and places where their money is kept as they near retirement.
Fixed annuities are designed to protect savings. They offer fixed interest rates, as well as market linked rates, which allows for modest growth, while eliminating the risk of loss caused by market fluctuation. Annuities are also designed to provide a source of lifetime income and some provide additional death benefits or increased benefits to cover long term care needs.
Product offerings vary greatly and marketing tactics may create confusion when shopping for the right annuity. To insure you get the most from your savings, we recommend that you work with experienced annuity specialists as you enter into this phase of retirement planning.
Create Income.
The money we save is meant to be enjoyed, not to become a source of stress and sleepless nights.
The #1 fear among retirees is living too long, and running out of money. In the past, a company pension coupled with social security was the antidote to this fear. However, in today's world the responsibility of funding retirement rests on our shoulders. Social Security is even on the chopping block and seems to become less certain for rising generations.
Income producing annuities are a great tool to replace the ever elusive company pension. They allow you to receive a monthly check for the rest of your life and can even be structured to provide income to a spouse or loved ones following your death. There are even income annuities that increase your monthly check based on inflation or based on your long term care needs.
Retiring doesn't have to be complicated or risky. You can create a wonderful life during all of it's stages by following a few basic financial principles, partnering with the right advisors, and using the correct products.
Recent Cases
$140,000 Income Producing Annuity
$4200 Deposit Bonus
10% guaranteed growth for 10 years
76 yo Couple
Looking to retire in 2-3 years
Recently sold a piece of property and wants to turn a portion of the proceeds into a guaranteed source of income to supplement their Social Security and other savings that will last for the duration of both their lives.
$1,090.10 Monthly Lifetime Income
$2180.21 Monthly for Assisted Living
$27,658.83 Multi-Year Guaranteed Annuity
2 year contract
1.95% guarantee interest rate
64 yo Male
Looking to retire in 6-10 years
Recently rewarded a small settlement from a lawsuit and was looking for a short term MYGA that would pay him higher interest than what he was being offered at the time from his bank.
$1089.21 Guaranteed Return w/Zero Risk
$400.00 Monthly Contribution
$85,000 Guaranteed Death Benefit
Zero Market Risk
55 yo Female
Looking to retire in 10-15 years
Wife & Mother
Feeling the need to contribute more towards retirement in addition to her husband's 401(k). And she is concerned that taxes will rise in the future.