Financial Planning and Retirement Planning
Guaranteed Retirement Income in Any Market?
Sounds too good to be true. Yes, I thought the same thing when I was studying finance in college!
If you don’t have a pension and you want a safe and steady retirement income that does not fluctuate or change with a down market, a safe investment with an insurance company, like a Fixed Indexed Annuity, may be the right solution for you and your family.
We know because we’ve helped thousands of local Hawaii clients with creating guaranteed retirement income that can withstand any market conditions.
Let’s take a step back, I want you to get a piece of paper and write down what you’re expecting to receive in retirement.
- How much are you expecting to receive from your current retirement accounts?
- How much are you withdrawing from your stock portfolio?
- How much are you receiving from your 401(k)?
- Are you receiving rental income?
- Are you calculating social security?
After writing down the multiple streams of income that you plan to receive in retirement, let’s highlight what is guaranteed.
I want you to highlight which stream(s) of income is a locked amount that will not fluctuate or change for as long as you are alive.
- What source of income is a locked amount that will always pay you regardless of how long you live?
- What source of income can be passed to your beneficiary if you unexpectedly pass early and did not withdraw all of the premium?
- What source of income is guaranteed by a billion-dollar insurance company that is A rated with excellent financial strength?
Most clients will tell us that, social security is the only income source that is guaranteed. That’s a good start, but do you want only one source of income to be guaranteed in retirement?
While you’re saving in your working years, most individuals’ largest source of retirement income will come from their 401(K) plan that is offered by their employer.
Typically, the company you’re working for will offer you one through a defined contribution plan or a defined benefit plan.
What’s the difference?
A defined contribution plan allows employees the option to invest in a retirement plan such as a 401(K), where you may be eligible for a contribution match from your employer. In this plan, you’re responsible for contributing each year and, in some cases, picking the appropriate investment allocation to ensure you have compounded growth and a steady return.
As for a defined benefit plan, this is more commonly known as a pension. The employer will pay you a specified amount in retirement for as long as you live. This is not as common, as you can understand the financial burden this can have on the employer’s financial strength as a company.
In order for you to add another source of steady guaranteed retirement income, you will have to look elsewhere. Let’s look at how one solution can provide you with an additional stream of income that is guaranteed and will not fluctuate in any market condition.
A Fixed Indexed Annuity is basically a contract between you and an insurance company. In exchange for your principal/investment, the insurance company provides you with a set, guaranteed income, either immediately or at some time in the future.
You also can earn interest, tax deferred, allowing the money in your contract to grow. It is also protected from market index risk. Even if the index your account it tied to collapses, your principal will remain 100% intact. No losses beyond that point.
This solution gives you a range of features and benefits that help you:
- accumulate assets for retirement,
- preserve what you’ve accumulated,
- turn those assets into a guaranteed stream of income, and
- help you pass on a financial legacy to your loved ones.
Whether your long-term objective is to build a source of guaranteed lifetime income, save for a specific retirement goal, or leave a legacy for loves ones, insurance contracts are designed to meet your retirement needs.
Call us at (808) 371-1868 for a complimentary portfolio review to see if this solution is right for you.