For people in their fifties, it’s never too early to think about a retirement financial plan. Even if you are starting a bit late in the game, now is an excellent time to catch up on planning.
However, so many investment, fixed-income, and insurance products are on the market. Like other investors, you may find it challenging to create strategies that meet your needs for safety and income.
Of the many options, annuities may be on your radar, but you may have heard bad things about them too. How can you judge if they are right for your financial situation?
To get started, learn about some scenarios where annuities can help people achieve their retirement money goals. Here are some things to consider when you are thinking of buying an annuity. Read More
Life insurance isn’t a one-size-fits-all solution. You have many options to cover your needs, including the ability to purchase additional benefits on a basic life policy. These additional policy benefits are called life insurance riders.
Some riders are automatically included in a policy at no extra cost. Other riders will require additional premium cost. Life insurance rider benefits are available for many needs, from terminal illness and long-term care costs to term insurance coverage of children or of a spouse. With that said, you must meet the conditions outlined in the rider to enjoy its particular benefit.
In some policies, you may blend different riders together, at additional cost. The riders you choose, whether included in the policy or purchased at additional cost, may be used for current or future insurance needs.
Since many life insurance riders mean additional premium to be paid, it’s prudent to be sure you don’t get too much insurance. Knowing the basics of different riders and what they offer is a good starting point. Let’s go more into that now. Read More
After many working years, most people would probably see retirement as a positive thing. Yet while it’s true for many Americans, a recent survey by Nationwide shows greater-than-expected retirement dissatisfaction. Nearly 3 in 10 recent retirees (28%) said that their lives are in worse in retirement than before. Moreover, just 2 in 10 future retirees expect that life will be better in retirement.
What was the reason for the retirement humbug? Financial issues, mostly. Among the 28% of unhappy retirees, 78% pointed to income as a reason while 76% blamed the cost of living.
The Nationwide Retirement Institute also noted other findings that are instructive for income and retirement planning. Let’s dive into some more of those takeaways now. Read More
Retirement planning is an essential step in financial life. Part of the transition is to ensure that your money is safe and you have income available for the rest of your life. For risk-conscious and lifestyle-minded investors, one instrument to consider for a retirement portfolio is an annuity.
Apart from principal protection, low risk, and tax-deferred growth, annuities can generate a guaranteed lifetime income. This income benefit can help ensure that the contract owner has a constant, dependable cash-flow throughout retirement.
However, there are many aspects of an annuity that people should understand before making a purchase, such as fees and conditions. One of the important conditions set out by annuities are surrender charges.
Let’s take a closer look at what a surrender charge involves. Read More
Achieving financial security isn’t an easy task. The dynamics of retirement income planning have evolved. It used to be that retired households could rely upon Social Security and personal pensions for the income they needed.
But that has changed. Now Americans shoulder more individual responsibility for their future income security. Also, life expectancies are on the rise. The challenge becomes ensuring our money will last for a retirement lifetime.
As you create your own retirement income plan – or consider potential changes to your current plan – here are six risks to retirement income to consider. Keep these potential pitfalls in mind as you formulate your own strategy. Read More
Year after year, many Americans are finding it harder to provide for their spouses during retirement. Guaranteed pension payments have been disappearing as more companies move toward 401(k)s and other savings plans. And with the end of file-and-suspend in Social Security, numerous couples now can’t use the higher earner’s wage record for greater benefit payouts.
This brings up the question of survivorship: How can retirees ensure their spouses receive sufficient income for current and future needs? Many couples have turned to joint life annuities as a long-term solution.
However, that doesn’t mean that a joint life annuity is right for everyone. In some cases, having separate annuities can be more prudent. Or it may be appropriate to seek retirement income strategies with other means. But no matter what, whether someone should choose a joint life annuity or a few single life annuities will vary on an individual basis. It depends on the potential buyer’s needs, goals, and situation, among other factors.
If you are considering a joint or single annuity, here are some pointers to help you think about your options. Read More
According to MagnifyMoney, people are carrying more than goal checklists into retirement. A recent analysis by them looked at data from the University of Michigan Retirement Research Center (MRRC) Health and Retirement Study. Their results found that more Americans are shouldering debt in their 50s and over.
It’s a serious finding, given that Americans have named mortgages and other debts among their top five money concerns. In the study, MRRC researchers survey over 20,000 Americans aged 50+ on many topics of financial well-being. This publication showed survey results from 2014.
MagnifyMoney found a number of debt trends that could undermine, or even cripple, the retirement goals of numerous Americans. Let’s look at how debt is affecting older Americans and their post-work lives. Read More
When shopping around for a life insurance policy, you have many choices. From monthly low-cost term insurance, to more expensive but long-term coverage benefits of whole life and universal life insurance, there’s a wide landscape of options.
As you consider different selections, it’s important to understand how these types of insurance differ from another. Among permanent life insurance, two widely-purchased options are whole life insurance and indexed universal life insurance.
While term life insurance is the most straightforward, it covers you only for a short-term period. Conversely, whole life and indexed universal life policies give lifelong coverage, so long as a policy remains active.
But they are more complex, tend to cost more than term coverage, and can be better-suited for long-term objectives. With that said, the cash value component of permanent insurance may be attractive for a number of reasons, including for efficient legacy planning, tax-advantaged wealth building, and tax-deferred retirement saving.
If you’re exploring term life insurance versus whole life insurance and indexed universal life insurance, it’s prudent to be diligent. You will want to research and consider your options carefully, and to help you get started, here’s a quick guide on the differences between these life insurance types. Read More
As far as financial security goes, when thinking of retirement, it’s important to consider the safety of your financial portfolio.
Do you have reliable income streams in place for retirement, whether for a set period or life? Is there enough liquidity in your assets to allow you to retire comfortably? Is enough of your money safe and put in secure, dependable places? Do you have an appropriate financial strategy for combating the the impact of inflation, high-ticket expenses like long-term care, and other costly retirement risks?
All of this brings us to a discussion on building a dependable safety net and how to make sure that you can answer these questions with confidence. Read More
Retirement can bring up a number of concerns, from lifestyle and health to social activeness. There’s also the issue of money. Many people worry about retirement spending, how much they need to save, and how this may affect their current money habits.
In a survey by Allianz Life, nearly one-third of Americans said they are “panicked” or “very worried” about cost-of-living increases and their effects on their retirement lifestyle. 6 in 10, or 64%, said they don’t have a plan to combat rising costs of living in retirement.
From the standpoint of pre-retirement preparation, this brings up an important point: Does spending tend to increase in retirement? Answering this question may play into decisions of managing expenses, controlling spending, and saving for retirement today.
Compared to pre-retirement, many Americans may expect their retirement spending to go down. Having fewer or no commutes to work, children moving out, paying off debts such as a mortgage, not having to deal with a wardrobe for work… these are just a few areas in which expenses can fall.
But many retirees may even see their expenses go up. Healthcare and personal care costs tend to increase sharply. Housing costs, such as home repairs or a roof replacement, may arise if you continue to live in the same place for years. Then there’s time – simply much more time for people to do things and spend money.
So, while there’s no ballpark answer, it’s important to have some idea of potential retirement spending. Here’s a quick look at some data findings and other helpful insights. Read More
