Your 401K, TSP and IRA funds money is for your retirement years… so what is important is how much monthly income it will produce and will it continue all of your retirement years that you live. The number one worry that retirees have is this question: “will my retirement funds money last as long as I do?” Indexed Annuities offer a second benefit with the use of an income options that these special annuities offer. Guaranteed Lifetime Income.
So how does that work? Continue reading
If you were investing in the market with your 401k, TSP or IRA back in the mid-90’s, you know all you had to do was to “show-up” to you make money… lots of it. The mid-90’s saw 20% plus gain. Fast forward to the turn of the century, however, we saw declined in a three year period of around 50%. Imagine seeing your retirement savings cut in half in three years and undoing all that gains that you had realized just a couple of years earlier. How can you get ahead if you are going backwards, right?
Indexed Annuities do not suffer declines in their account. Continue reading
Managing 401k money during retirement is a challenge that Indexed Annuities may well offer the best solution. There are two things we know about the market.
1) it will go up
2) It will go down.
The Dow Jones is predicted to lose approximately 9% by the end of December 2012 according to Financial Forecast Center http://www.forecasts.org/djia.htm a 15 years online forecasting service with a 97.5% accuracy rate.
According to their prediction, The Down Jones Industrial Index is slated to lose over 1,110 points reflecting a lost of almost 9% during that 6 month period. You will note from the chart to your left, the lowest point is in November. Not too surprising as that is the month that voters go to the polls to cast their ballot for President of the United States. I think it is very clear that this is probably the single greatest factor creating this downward cycle. America is not too confident of those results. Continue reading
There is much concern about the implementation of the ObamaCare Health Bill, also know as the The Patient Protection and Affordable Care Act as to how it may affect retirees covered by Medicare. There has been a significant difference in the way this was presented to the public as penalizing individuals who chose not to buy required health insurance coverage to where it was ruled a tax by the Supreme Court of the United Stats. As one could imagine, the vast segment of the population are concerned about how it may impact them, their employees, their business and our nation as a whole. There are many unanswered questions looming… and this is quite possibly the worst part of this whole process because it deters business investment, creation of jobs and spur on economic recovery. Continue reading
Solutions to “shore up” retirement incomes:
With all the changes in our economy, investment uncertainty, and bankrupt pension plans, what retirees need is solid solutions to solving their retirement income woes. Consideration must be give to all possible solutions including those that fall “outside of the box“. Creativity can pay off big in solving these retirement problems. Continue reading
Problems Facing Retirees:
Is Retirement a Crap Shoot ?
The number one challenge that retirees face financially is how to make their retirement income last as long as they do. That’s a problem because people are living longer than ever before and their retirement funds must be paid for a longer period time… about 6 years longer since the mid 1970’s when I entered the life insurance and financial industry. So when you reach your retirement years, how do you help assure that you don’t run out of money? Continue reading
Defined Contribution Plans:
Defined Contribution plans include 401K employer plans, Thrift Savings Plans (TSP) for Federal Employees and Individual Retirement Accounts for Individuals. The significant difference is that these plans do not guarantee the benefit that will be received at retirement. Rather, only the contributions are guaranteed. Whether the funds will be enough to provide for a worry-free retirement or not will depend upon that amount of money accumulated during the contribution years, the earnings those funds receive (growth) during the contribution years and the earnings those funds are likely to generate during the distribution years (retirement). The question “will be enough or not is of no concern to the employer“, but rather the employee or individual. Much care should be given in both the growth and distribution of these funds if one is to obtain a reliable retirement income. Continue reading
Defined Benefit plans are retirement plans where the benefit to be received at retirement is “defined”.
This is the old Pension Model. Typically it says something like you receive retirement credits of say 2 ½ % for each year of service. A person working for 30 years would receive 75% of their pre-retirement income. Twenty years, 50% and so on. There is a minimum age and years of service requirement.
The great benefit here is that you can not out live you income. There are some problems, however, with Defined Benefit Plan. Continue reading
I called a man that I knew who was approaching age 65 to inquire as to his retirement plan. He said to me “Retirement? Retirement is Death”.
Now what he meant was, he couldn’t afford to retire and saw no way to ever be able to afford retirement. Maybe you know someone like this… maybe it’s even you. Continue reading