Retirement Planning

Will I have enough?
Life expectancy in the United States is at an all-time high.¹ While that’s great news, one drawback to a longer life is the greater possibility of outliving your savings. In fact, in one study, 43 percent of Americans surveyed said their No. 1 fear in retirement was the possibility of outliving their savings.²

Figuring out the best way to make your savings stretch over the next 25 to 30 years can not only be confusing, it can also be overwhelming.

But it doesn’t have to be that way.

Insurance products like annuities can provide a steady and reliable income stream for the rest of your life, while investment products create opportunities for long-term growth. We can help you incorporate both in a financial strategy designed to put you on the path to the retirement lifestyle you want.

¹ Honor Whiteman. Medical News Today. Oct. 8, 2014. “CDC: Life Expectancy in the US Reaches Record High.” https://www.medicalnewstoday.com/articles/283625.php. Accessed March 23, 2015.

² Catey Hill. MarketWatch. July 18, 2016. “Older People Fear This More Than Death.” https://www.marketwatch.com/story/older-people-fear-this-more-than-death-2016-07-18.

IRA & 401(K) Rollovers

What’s the best way to handle old IRAs and 401(k)s?

When you change jobs or retire, there are four things you can generally do with the assets in any employer-sponsored retirement plan:

1. Leave the money where it is
2. Take the cash (and pay income taxes and perhaps a 10 percent additional federal tax if you are younger than age 59½)
3. Transfer the money to another employer plan (if the new plan allows)
4. Roll the money over into an IRA

Rolling over from one qualified plan to another qualified plan allows your money to continue growing tax-deferred until you receive distributions in retirement. We can help you determine if a rollover is the right move for you.

Annuities

If you’ve ever worried about outliving your retirement savings, you’re not alone.

A recent study found that 67 percent of Americans indicated they would be willing to give up smaller pay increases in exchange for steady and reliable income in retirement. In the same study, 78 percent said the disappearance of pensions has made it harder to achieve the American dream.¹

With pension offerings on the decline, you may want to consider a fixed income component to your financial strategy. In short, adding an annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed. 

What is an annuity?

An annuity is a contract you purchase from an insurance company. For the premium you pay, you receive certain fixed and/or variable interest crediting options able to compound tax deferred until withdrawn. When you are ready to receive income distributions, this vehicle offers a variety of guaranteed payout options — some even for life.

Most annuities have provisions that allow you to withdraw a percentage of the value of the contract each year up to a certain limit. However, withdrawals will reduce the contract value and the value of any protected benefits. Excess withdrawals above the restricted limit typically incur “surrender charges” within the first five to 15 years of the contract. Because they are designed as a long-term retirement income vehicle, annuity withdrawals made before age 59 ½ are subject to a 10 percent penalty fee, and all withdrawals may be subject to income taxes.

¹ The National Institute on Retirement Security. “Retirement Security 2015: Roadmap for Policy Makers – Americans’ Views of the Retirement Crisis.” March 2015. https://www.nirsonline.org/storage/nirs/documents/2015 Opinion Research/final_opinion_research_2015.pdf