One of Our Three Core Principles: Safety First
Is It Possible to Have Retirement Income That Is Safe?
If you are interested in learning about ways to have retirement income that is safe and occurs over time, reach out to us. We’re happy to help you discover potentially new ways of protecting your principal.
While you still have wage income, you might be ok with taking some risk with your retirement savings. Yet, once you are getting close to retiring, that might change. Perhaps you are looking for retirement income that is safe? Some options, such as income from certain types of fixed index annuities, may offer income for life, backed by the claims-paying ability of the insurance carrier. At Total Financial Solutions, we can help you understand some of these options.
3 Ways We Think About Retirement
Total Financial Solutions has three main ways we think about retirement concepts. These are our core principles in our work with clients:
Retirement Income That is Safe
(By a contract)
If you protect your savings in retirement, then it may be there for you when you need it. If markets change, you might not want your money to also be at risk. In retirement, time is unfortunately not on your side. So, changes can have impact on your savings. Unless, of course, you are using a strategy that protects your retirement savings principal.
Total Financial Solutions can show you possibilities, such as certain annuities and life insurance products, that may help you learn about ways to keep your money in retirement. For instance, a fixed index annuity (FIA) may offer principal protection. In addition, it may provide you with an income in retirement, after an accumulation period. Remember, market conditions do not make your principal drop with an FIA, because an FIA is not an investment, per se. Instead, it is a contract with an insurance carrier. They offer ways to potentially access income without losing principal.
Safety is a top focus for our clients at Total Financial Solutions
You may be someone who is ok with the inherent ups and downs of the market. However, some retirees want at least some of their money to be kept somewhere else. Of course, if your money is in the markets and it goes down, you may lose of some of your money. However, with other options, such as certain fixed index annuities or even certain index universal life products, the money you have put it stays stable until you take money out.
Annuities and a Safety Focus
You might want to learn more about the safety of your principal in an FIA. Specifically, an FIA is a contract between you and an insurance company. Your money is held safely (principal protection) by the insurance carrier. Then, you agree to let that money sit with the insurance company over a number of years. Once that timeframe is up, you may then be able to access your money in the form of withdrawal payments.
Some retirees may also choose to keep some of their money in a traditional bank savings account. Your savings here might be protected by the FDIC, up to $250,000. Yet, the interest you earn on this money may be less than what you hope. Also, the interest you get is taxable each year. With an FIA, you may be able to contribute more than $250,000 to your annuity, depending upon your situation. In addition, it is possible to have protection of principal in your FIA on a higher amount, if you meet certain criteria with the insurance company. Indeed, there may be a tax difference as well. For example, an FIA may have tax deferral benefits versus a traditional savings account.