Preparing for retirement without expert advice is risky and all too commonplace. The financial crisis of 2007-2008 has upset the financial plans of many folks nearing retirement. Do you worry that you won’t have enough money to last your lifetime? Are you facing a retirement with diminished expectations? The good news is that you can still take steps to maximize your retirement income and lower the risk of running out of income.
Fulfilling Retirement Dreams
Are you frustrated by your investment returns over the last decade or two? Do the gyrations of markets feel like a rollercoaster ride you can’t exit? Failing to consult with a financial advisor in the five years prior to retirement is truly a missed opportunity to set things right. An advisor can show you many ways to improve your prospects for a comfortable retirement lifestyle while resolving your financial fears and frustrations.
More retirement money means you’ll be able to achieve more of your dreams — travel, hobbies, entertainment, etc. Some changes to your retirement plans will be minor tweaks, while others may require new thinking. An underperforming IRA or 401K can be remedied by redeploying your assets to produce steadier and larger income. A financial adviser can help you evaluate how well your mutual fund and other investments have performed, and guide you to better alternatives. You’re not likely to miss a medical checkup — why not give your retirement plans a financial checkup?
Redeploying Your Assets
Blending annuities and whole life insurance with investments and savings can help better achieve your retirement goals. A recent study by W.D. Pfau, Ph.D., Chartered Financial Analyst and professor at the American College for Financial Services, describes how to optimize the benefit of your retirement portfolio using annuities and insurance so that you can realistically look forward to a worry-free retirement. With proper planning, you can achieve a number of important results:
- Increase your income during your retirement years
- Protect your income from investment risks
- Ensure you never outlive your income
- Provide for long-term care that will cover your costs despite inflation
- Provide a legacy to your loved ones and to important organizations
- Remove the need to make riskier investments to compensate for poor returns
- Qualify for tax benefits
What to Do Now
Research shows that the most valuable retirement plans are composed of a tax-advantaged investment portfolio, such as an IRA or 401K, a single premium income annuity and a whole-life insurance policy. The tax-advantaged portfolio provides growth potential, whereas the annuity and life insurance policy provide guaranteed income and protection for beneficiaries. Part of the investment portfolio can be used to purchase the annuity, creating a monthly retirement income that does not rely upon investment returns.
These are complex issues, so it makes sense to sit down with a qualified financial advisor to explore the many paths to retirement security open to you. An adviser will be happy to work with you to help you achieve your retirement dreams.