Valentine’s Day is here. What are your plans for your special someone? Perhaps a romantic dinner or even a weekend away? Are you buying flowers, chocolate or maybe even a pricey gift like jewelry?
This is the time of year to let your spouse know how much he or she means to you and how much you care about your future together. Retirement planning may not be a conventional Valentine’s Day gesture, but it can help solidify your financial stability, so you can both enjoy the next stage of your life.
You and your spouse may have worries related to retirement and how you’re going to pay for it. Nearly 60 percent of Americans say that retirement is their top financial concern.1 This Valentine’s Day, explore strategies that can help reach the goals you have set for retirement. A stable, comfortable, enjoyable retirement may be the best gift you could ever give your spouse. Below are a few ideas on how to do so:
Minimize your downside risk.
Do you and your spouse show concern every time the market starts heading down? If so, the past few months have probably caused some amount of anxiety, especially if you’re approaching retirement.
It’s normal to become more conservative as you get closer to retirement. You’ve worked hard to accumulate retirement assets. The last thing you want is for those assets to decline in value just when you need them the most.
You probably can’t avoid risk completely, though. You’ll still need some level of growth in retirement to keep up with inflation and fund a lengthy retirement. Growth and risk often go hand in hand. It’s usually hard to get one without the other.
However, there are tools you can use to create growth potential without the downside risk. One is a fixed indexed annuity. These tax-deferred tools are linked to a market index, such as the S&P 500. You earn interest each year based on the index’s performance. If it performs well, you receive more interest. If the index performs poorly, you get less.
There’s a cap on how much interest you can receive in any given year. However, there’s also a floor on how much you can lose. Most fixed indexed annuities have a principal guarantee*, so there’s no risk of losing your principal because of market performance. A fixed indexed annuity could be the right tool to help you achieve growth but eliminate the downside risk from your retirement strategy.
Create guaranteed* income for life.
Retirees are living longer than ever. According to the Society of Actuaries, a 65-year-old couple has a 50 percent chance of at least one spouse living to age 94. There’s a 25 percent chance that one spouse will live to 98.2
As you might expect, it’s usually the wife who lives longer. Of the nearly 12 million senior adults in the U.S. who live alone, 69 percent are women. In fact, almost a third of all women over the age of 65 live alone, compared with only 26 percent of men in that age group who live alone.3
It’s not pleasant to think about dying, especially during a normally romantic period like Valentine’s Day. However, the statistics suggest that it’s too important for retired couples to ignore.
Fortunately, you can use your assets to create a stream of income that’s guaranteed* for both of your lives. One strategy is to purchase an immediate annuity with a joint payment schedule. You contribute a lump sum of assets, and the insurer converts those assets into an income stream that’s guaranteed* for both of your lives, no matter how long the surviving spouse lives.
You could also use a guaranteed* withdrawal benefit on a fixed indexed annuity. You get to withdraw up to a certain percentage of your contract each year. As long as you stay within the withdrawal rules, your distribution is guaranteed* for life, no matter how the contract performs. Even if the market declines, you and your spouse continue to receive the annual withdrawal.
This Valentine’s Day make a commitment to your financial future together. At Protecting Your Retirement, we can help you identify and implement strategies to protect you and your spouse. 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.
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