Blog - SafeMoney.com

Retirement Planning Blog

in Annuity
on 07 August, 2017

qualified annuities vs non qualified annuities

While researching your retirement income options, you have probably come across the concept of annuities. Chances are the general idea of annuities is pretty straightforward. But once you start digging deeper and reading through the different annuity terms and concepts, things may start looking a bit more involved.

If you are thinking about buying an annuity, then one decision that you will make is whether to opt for a qualified or a non-qualified annuity. The good news is that these terms apply to all of the different types of annuities: fixed, indexed, variable, and so on.

The difference between the two is the type of money you may put in them: after-tax dollars or income that you haven’t yet paid taxes on, pre-tax dollars.

While this is the essential difference between qualified and non-qualified annuities, knowing the basics of both types can help with making a well-informed decision.

So, let’s get into the basics of a qualified annuity versus a non-qualified annuity.

Read More
on 26 July, 2017

safe money advisors locate a good financial professional

Are you looking for help on how to retire safely and comfortably? "Safe Money Advisors," or financial professionals offering safe strategies, can provide solutions to help you reduce risk and manage uncertainty. But so many are promoting themselves online and elsewhere. Whom can you turn to for the guidance you need?

As you consider different candidates, conduct careful due diligence. Just like doctors and lawyers and their specialties, not all financial professionals specialize in retirement planning. Any advisor you meet should state clearly their focus on retirement issues, and communicate that expertise. As you meet with them, pay attention to the language and concepts they use - do they speak of the need to plan for income, financial protection, risk management, and lifestyle goals?

Here are some other variables to weigh as you evaluate different Safe Money Advisors to help with your financial future.

Read More
in Annuity
on 04 August, 2017

what is a market value adjusted annuity

Have you ever heard of a market value adjusted annuity? If you are planning for your retirement income, then you may be considering an annuity as one of your options. Of course, there is a number of possibilities when it comes to purchasing annuities. So, it is important to understand clearly what annuities are so you can make sound financial decisions.

In cases when you are looking for tax deferral and an instrument which can offer safe growth and reliable future income, a fixed annuity can be the perfect option. These typically entail an average contract of seven to twelve years and guarantee a minimum annual interest rate. While the duration of the contract and interest rates are important to consider, you should also take into account whether the annuity is subject to a Market Value Adjustment (MVA). It's common for an MVA to be attached to fixed annuities, and as you probably noticed, it's these contracts with an MVA that are called "market value adjusted annuities."

Before making a decision, it's important to know what a market value adjusted annuity is. So, let's get into it.

Read More
on 20 July, 2017

americans retirement knowledge stand

Virtually everyone understands that money doesn’t grow on trees. But what about planning for retirement? If recent research gives any indication, many Americans may be coming up short. In the 2017 Retirement Income Literacy Quiz – courtesy of The American College for Financial Services and the New York Life Center for Retirement Income – most quiz-takers received barely-failing or below-failing grades.

To measure retirement literacy, the test comes with two options: a six-item questionnaire on key retirement planning areas, and a more comprehensive test with 38 questions. With retirement literacy and retirement planning success being closely linked, you may want to check out the six-question quiz yourself to gauge your own retirement readiness.

So, what exactly did these questions ask? And how did Americans fare in their retirement knowledge? Let’s delve into the data now.

Read More
on 03 August, 2017

 thrift savings plan distribution options basics img

Editor's Note: This article is not intended to be and should not be used for tax advice. We have published this to be a source of information and for educational purposes only. Please consult with a qualified tax planning professional for guidance with your personal circumstances.

Update: In November 2017, Congress passed the TSP Modernization Act, which gives Federal Workers more flexibility with their plan withdrawal options. While the legislation has been passed, the Federal Retirement Thrift Investment Board is in the midsts of adapting new policies and procedures into its publications and websites. You can read more about that here. Some of the information below may be subject to change with these new procedures and policies.

As part of the federal civil service or the uniformed services, you may participate in the Thrift Savings Plan (or TSP). According to the Thrift Savings Fund, there were 4.8 million plan participants and approximately $458 billion in plan assets under management, as of December 2015. But while millions of federal employees rely on the plan, many are confused about their TSP distribution options for retirement.

In retirement, you will need access to your money for income. However, it’s prudent to be aware of all implications before you start taking money from your account. The Thrift Savings Plan has a unique framework for withdrawals. Making a withdrawal before knowing everything involved can greatly affect your future money access options.

Here are some basics on different distribution options you may have with the Thrift Savings Plan.

Read More
on 13 July, 2017

generational conversations habits retirement planning

You have probably heard plenty of old platitudes about the importance of taking action. For many, “if you’re going to talk the talk, you’ve got to walk the walk” is one such truism. But in money matters, people often hesitate to prepare for their retirement future. For that matter, they might not even discuss it with their family and other loved ones.

In various research studies, the findings are stifling. Not only are Americans struggling with retirement readiness, debt, and living within their financial means. They may limit themselves in their discussions of financial matters. Money may be a taboo subject or people may be embarrassed about their personal financial circumstances to the point of not wanting to discuss them - not to mention other possible factors.

So, just how are Americans going about retirement and financial topics? And how might this affect future generational spending and saving practices? Let’s dive into the numbers.

Read More
on 31 July, 2017

retirement income planning tips for small business owners

Retirement income planning already is difficult. But for small business owners, it poses even more challenges. Despite being used to the hustle-and-bustle of day-to-day tasks and operations, even businesspersons have to slow down at some point.  

Eventually entrepreneurs get to an age when they can’t run their companies like they did before. As a company owner, you likely will face this someday. You may have to reduce your involvement, or it may even be time for an exit. If that’s in the cards, you might have to sell your business or let someone else in the family take it over.

In any case, there’s retirement at the end, and moving into retirement means you have to make plans to safeguard your financial future. In practice, this means being able to pay the bills today while saving enough to live off tomorrow (when your business can be no longer a source of personal income for you – or less income).

Retirement income planning, however, is not a linear thing. It entails holistically evaluating your lifestyle alongside your income and making projections for your life after retirement; then putting in place protections to ensure you can enjoy a lifestyle that’s right for you as long as you live. 

If you are confused about what you should do to retire happy and comfortably, you are not the only one. Many small business owners – not to mention several Americans in general – are in the same boat as you. Read on for some helpful tips to assist you with enjoying more lifelong retirement income certainty.

Read More
on 07 July, 2017

why people dont buy life insurance

Lots of people agree on the importance of life insurance. But it’s something that many of us don’t own, as research indicates.

According to LIMRA, a financial research group, 30% of U.S. households owned no life insurance at all just a few years ago. About 48% of households, or 60 million families, had an insurance gap that averaged $200,000 from what they actually needed. Factoring in average total coverage, almost 5 in 10 families would have only three years of household income replaced by their life insurance policies.

So, what are some reasons that Americans aren’t buying life insurance?

Read More
on 31 July, 2017

biggest retirement income planning mistakes to avoid

Sure, life happens and we make mistakes. We learn and try not to repeat them. But in retirement income planning, the margin for error is smaller. Just one or a few mistakes could derail your goals or even put your retirement on the rocks.  

If you are someone who plans to retire within the next 10 years or sooner, now is the perfect time to start putting your financial house in order. However, as you devote attention to daily tasks in the workplace and your household, it can be hard to make your post-work future a priority. But retirement can come sooner than you think, and it’s prudent to start preparations before your time has passed.

So, meet with your financial professional to discuss your goals, review the status of your retirement assets, and evaluate your financial picture. And as you near your retirement, it’s important to refrain from critical income planning mistakes. From bad saving and spending habits to easy-to-overlook risks and planning pitfalls, here are six critical retirement income planning mistakes you should avoid.

Read More
on 29 June, 2017

retirement planning steps with your spouse partner

Have you and your spouse discussed your goals and expectations for retirement so that you can be fully prepared? Not that much? You’re not alone. According to research from Hearts and Wallets, more than half of Americans (58%) are struggling with retirement planning, estate planning, and making investment decisions.

An article on NextAvenue.org talks about why this might be case. Part of the trouble is baby boomers have a lot of emotional hopes and dreams tied up in their retirement. They also have goals they want to accomplish before they retire, which may lead to delays in retirement decisions. As for estate planning, many older Americans simply don’t feel a strong urge to deal with estate matters yet.

As you approach retirement, it’s time for discussions. You should have frank conversations with your partner about retirement, what you want it to be, and how you will pay for it. This is a crucial step in being able to enjoy a secure and comfortable future. Let's go over some important steps to take.

Read More

Proud Member

 FBIC LogoHorizSOFA Logo1

Contact Info

Safe Money Broadcasting Home no glow img

1107 Key Plaza #450
Key West FL, 33040-4077
1.877.476.9723
(877.GROW.SAFE)

Find a Financial Professional

bottom map

;