What's NEw at cornerstone?
check back REGULARLY for updates!
check back REGULARLY for updates!
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.
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.
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.
*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
Write something about yourself. No need to be fancy, just an overview.