There really are two lives we live. The first life and then the second life when we realize we only have one life.
Retirement is the only time in your life when time no longer equals money.
Be out living your life, not outliving your savings.
Longevity risk is the financial danger that you'll live longer than expected, outliving your retirement savings and income, a growing concern as life expectancies rise. It means potentially needing income for 30+ years in retirement, potentially facing higher healthcare costs and depleted funds. Managing it involves strategic planning like delaying Social Security, diversifying investments, planning for healthcare, and using income-generating tools like annuities, rather than eliminating the risk entirely. As life expectancy increases, the threat of outliving your retirement savings is real.
Estimating your longevity is an important aspect of retirement planning, but creating a solid financial plan and updating it regularly may be even more consequential to your success. Financial planning isn't something you do just once. Your health, the market, and even tax laws can all change on a dime, so it's a good idea to check in at least once a year—and update your life expectancy should any of your assumptions change—to make sure you're still on track. No matter how much planning you do, there's no way of knowing for certain how long your retirement journey will last. The risk of running out of money is the top concern for most retirees—even those with ample savings. Fortunately, there are ways to guard against it. A successful retirement plan will balance your current needs and wants with your future goals. On a more fundamental level, it should help you enjoy your golden years in whatever way you see fit.
Fixed index annuities (FIAs) can be a valuable addition to your retirement portfolio. Given the uncertain economic environment of the past decade, a fixed index annuity can help protect your principal from negative market fluctuations while offering a guaranteed minimum interest rate with the opportunity to earn higher interests based on the upside performance of a equity index like the S & P 500. A fixed index annuity offers a unique combination of benefits that can help you achieve your long- term goals. No other product offers the same tax deferral, indexed interest potential, and optional benefits to protect your retirement assets and income from stock market losses while providing guaranteed lifetime income ensuring your savings last as long as you do.
5 Ways to Stay Confident in Retirement
This guide takes a critical look at the finances of retirement. It talks about health care costs, income stability, and the burden of debt and is designed to help your clients know the recipe for success in retirement.
Fixed Indexed Annuities (FIA) are not suitable for all investors. FIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. FIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims-paying ability of the issuing insurance company.