As you plan for retirement, selecting the right annuity type — whether a qualified vs non-qualified annuity — can shape your financial security in significant ways. When you understand the implications of each type, you can optimize tax advantages and income benefits.
In this article, we’ll talk about a qualified vs non-qualified annuity. This can help you make informed decisions that align with your retirement goals and financial objectives.
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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
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
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
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
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
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
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
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
Like everything else we do, saving for retirement involves risk analysis. We might not think about getting in the car to go to the grocery store, or even booking our dream vacation to hike the Inca Trail in Peru, as particularly risky decisions. But there are still elements of risk involved in every choice we make.
Your risk tolerance will help to you maximize and protect your retirement savings when you make sound choices. As you save and near retirement, your risk tolerance should change, adapting to your financial and income needs. In order to manage your retirement planning effectively, you need to understand your risk tolerance, grasp your financial needs in retirement, and make effective decisions about your savings and asset allocation.
Overall, you should be ready for a “smooth” financial transition into retirement – when you stop earning a full-time salary or business income, and start drawing on the savings you accumulated over many years. Working with a financial professional will help you meet your retirement income and financial goals, like the independent financial professionals at SafeMoney.com.
Let’s go into more detail about risk tolerance and why it’s so important. Read More
