It’s the scariest time of year. Halloween is here again. It’s time to stock up on candy, carve your pumpkin, and find the perfect costume. This may be the season for ghouls and goblins, but there could also be terror lurking in your retirement strategy.
 
More than 50% of Americans say their number-one financial concern is not having enough money for retirement.1 It’s a valid concern. Retirement is a substantial financial need. It can be challenging to accumulate enough money to fund a long, stable retirement.
 
Fortunately, there are strategies that can take some of the terror out of retirement uncertainty. Below are three common retirement concerns. They can all be addressed with one optional shared strategy—a fixed indexed annuity (FIA). If you share these retirement concerns, you may want to consider how an FIA can fill the gaps in your income planning.

Market Volatility 

Nothing can derail a retirement income strategy like a market downturn. You’ve worked your entire career to save and accumulate assets. A decline just before retirement could reduce your nest egg and limit your ability to generate income.
 
A fixed indexed annuity can help you reduce your risk exposure. In an FIA, you have the potential to earn interest based on the performance of an external market index. If the index performs well, you earn more interest, up to a limit. If it performs poorly, you may earn little or no interest.
 
However, most FIAs have a principal guarantee*. That means that even if the index declines in value, your annuity value will not go down. You can’t lose any premium due to market risk. An FIA could help you achieve growth while reducing your risk exposure.

Unpredictable Income 

Where will your income come from in retirement? It’s an important question. Unfortunately, too many retirees can’t answer it. Social Security will provide some level of income. Perhaps you’re lucky enough to have a defined benefit pension.
 
The rest of your income may come from your savings and investments. However, that income isn’t guaranteed* and may not be predictable. After all, if you suffer a loss in the markets, your income could go down as well.
 
You can use an FIA to help manage this risk. Many FIAs have optional guaranteed* withdrawal benefits. You’re allowed to withdraw a certain amount each year. The withdrawal is guaranteed*, which means you can take the same amount regularly, regardless of how your annuity performs. That kind of predictability can help you make informed financial decisions throughout your retirement.

Running Out of Money 

It’s possible you could spend 30 years or more in retirement. That’s a long period of time to make your assets last. If you don’t watch your spending in the early years, it’s conceivable you could run out of money by the end of retirement.
 
Fortunately, an FIA with a guaranteed* withdrawal benefit lasts your entire life, no matter how long you live. As long as you stay within the income limits, your income will last your entire life. Again, that could provide much-needed certainty to help you meet potential financial challenges in the later stages of retirement.
 
Ready to take the terror out of your retirement strategy? Let’s talk about it. Contact us at Cornerstone Financial. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://news.gallup.com/opinion/polling-matters/260570/despite-economic-success-financial-anxiety-remains.aspx
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
19291 - 2019/9/23

According to a recent survey from Policygenius, only 32% of Americans own life insurance.1 Life insurance provides financial protection, especially for those with children or other dependents. Life insurance provides a tax-free lump sum benefit that can be used to cover a wide range of expenses and financial challenges.
 
Life insurance is a valuable tool for many Americans, but it can be important for small business owners. In many small businesses, the owner wears multiple hats. You may be the CEO, but also a salesperson, a manager, a bookkeeper, and much more. If the owner passes away, the business could suffer a major loss, both financially and operationally.
 
Fortunately, you can use life insurance to minimize your risk and protect your business and your family. If you don’t have life insurance or don’t have enough, now may be the time to explore your options. Below are a few ways you could use insurance to protect your family in the event of your death:

Provide the business with liquidity and cash flow. 

It’s never fun to think about death, but it’s also too important to ignore if you own a business. Imagine what might happen if you were to unexpectedly pass away. Would your business continue to run seamlessly? Or would it face major disruption? Who would run the business?
 
Life insurance can give your family and your business much-needed cash to keep the business running while they address those questions. They can use the cash to pay bills, make payroll, and maintain operations until they develop a strategy for how to move forward.

Compensate your family and protect your partners. 

Do you have a business partner? Or even multiple partners? An unexpected death can create chaos in a business partnership. On one hand, your partners may be able to assume your responsibilities and keep the business afloat.
 
On the other hand, your partners may also want to take over your share of the business. You’ll likely want your family to be compensated if that happens. Life insurance can provide funding to facilitate that transaction.
 
You and your partners can all buy life insurance policies on each other. If you pass away, your partners receive the death benefit. However, you use a contract called a “buy-sell agreement” to dictate what happens with the benefit. For instance, your agreement may state that your partners use the proceeds to buy your share of the business from your family. Your loved ones receive compensation and your partners are able to keep the business running.

Avoid liquidation or other undesired outcomes. 

Assume you pass away and you don’t have partners or a family member who can step in and run the business. What happens? Your survivors may have no choice but to fold up shop and sell the business. In fact, if you have outstanding debt, your creditors could foreclose and liquidate your business’s assets.
 
Life insurance helps your heirs avoid that situation. They can use the proceeds to pay off debts and meet financial obligations until they can find a buyer or other suitable outcome. That can prevent liquidation and help them get fair value for all your hard work.
 
Ready to protect your business and your family? Let’s talk about it. Contact us today at Cornerstone Financial. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
 
1https://www.policygenius.com/blog/many-americans-are-underinsured/
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
19300 - 2019/9/24