planning for the future.

Social Security.

Registered Social Security Advisor

Claiming Social Security is one the most significant and lasting decisions we will make for our retirement. Take the time to speak with a Registered Social Security Advisor to ensure you are maximizing your benefits and making the right personalized decision. An RSSA is certified and specially trained to navigate the complex rules of Social Security.

Social Security is something we pay into all of our working years, but most of us don’t understand all the in’s and out’s of it or really how it works. Timing our Social Security correctly can mean the difference of $10,000’s or even $100,000’s over our lifetimes. There are many variables to take into consideration in order to maximize our benefits. For example, if we’re married, divorced, or widowed, it is important to time the claiming of spousal or survivor benefits. We also need to factor in our own health history as well as our immediate family’s health history. A common mistake people make is basing their retirement income needs on the average life expectancy. This must be something that is based on your personal maximum life expectancy, as running out of money is the #1 fear of all seniors today.

Social Security is something we will be drawing from for approximately a 1/3 of our lives. It is invaluable to consult with someone to confirm you are maximizing the benefit. We can help you connect with a Social Security Advisor certified and specially trained to analyze your particular situation and lay out a financial plan.

what if Social Security isn't around in the future?

There has already been legislation passed that has put Social Security in a surplus. And there are also additional legislative proposals in discussion to reform and fund the program.

What is your full retirement age?

There is confusion around when to take Social Security because you reach your Full Retirement Age (FRA) at different times depending on when you're born. In general, if you were born in 1960 or later, your FRA is 67.

planning for the future.

Retirement & Annuities.

Have you ever looked at the alphabet soup of financial accounts and just tossed up your hands and thought it is too complicated to try and understand?

There are 2 main types of accounts: tax-deferred and tax-free accounts.

An annuity is simply an interest-bearing account with an insurance company. Annuities are the only financial product that can guarantee a lifetime income stream. A death benefit rider allows your family to continue receiving annuity payments or take the balance as a cash payout after you die.

Your age and growth horizon, or how long it will take you to reach your financial goals, are important factors to consider when deciding if an annuity is a good investment.

There are 3 basic types of annuities: variable, indexed, and fixed. They are not the same. They have very different characteristics and purposes. When applied correctly, each of the 3 are very effective. We conduct an analysis with you to determine which type of annuity would be most effective in achieving your financial savings and growth goals.

Let’s take a brief look at the characteristics of each type of annuity.

What is a tax-deferred account?

Would you believe that for tax purposes, a 401(k), 403(b), TSP, or traditional IRA are all pretty much the same thing? It just depends on where you started your retirement account. A 403(b) is if you started at a school or hospital, a 401(k) is if you worked at a private company, TSP is if you were a government worker. If your job doesn’t offer a retirement plan, you can just open an IRA (Individual Retirement Account) on your own. You might eventually roll your old retirement plans into an IRA because you don’t necessarily want to have multiple orphan accounts just sitting with your old jobs.

What is a tax-free account?

Roth 401(k)s and/or Roth IRAs are different because they allow you to grow the money and take it out tax-free. Contributions are made with after-tax dollars that go into a Roth and the money grows tax-free, not tax-deferred. The money can be withdrawn tax-free.

Variable

Variable annuities are very much like a 401(k) or mutual fund, they go up and down with the market. They can have extra features like a guaranteed death benefit or a guaranteed income.

Fixed

If you are familiar with a CD, a fixed annuity is very much like a CD. It is a fixed rate of return for 2 years or 5 years or a set period of time. There are no surprises with a fixed annuity, the rate will remain the same the entire length of time and you can withdraw it or re-roll it once it matures.

Indexed

Indexed annuities are like a hybrid. They follow market indexes and go up with the market, however, they have a contractual guarantee to never lose money. If the market goes down, then your account will remain the same. There can be a certain peace of mind knowing that your account will never lose money.

Common annuity myths debunked.

when i die, the insurance company keeps my money.

This may have been true at one point in history but it is very rare now. It was a process called annuitization. Saying annuities of the past act the same as annuities of the present is similar to comparing your cell phone today to a flip phone or even a landline phone. Yes, they both allow you to make phone calls but they definitely do not have the same features.

They have high fees.

There are some annuities that have high fees, those are usually the variable annuities. There are numerous annuities that have no fees at all. And you can opt to pay some fees if you want to address specific concerns.
Reasons people will pay fees are to have an increased benefit if they go into a nursing home, or a more aggressive lifetime income schedule or more aggressive growth. Depending on what you are looking to accomplish it may make sense to pay those fees, but you can have an annuity with no fees at all.

They have low Returns.

Annuities used to have predominantly low returns. That has changed over time. Modern annuity products now have participation rates equal to market returns and some have even higher returns.

My Money is Locked away.

Annuities, like most retirement strategies, are designed to be long term. Most annuities are designed to give you certain benefits, and in exchange for these benefits, there are some limitations. Most annuities will allow you to access 10% penalty free every year. In essence, when you reallocate funds into an annuity, you are planning your future withdrawal / income stream from the funds in the account. Some people will argue and make a big fuss over only having access to 10% every year, but when was the last time you took out half of your assets for any reason, emergency or otherwise?

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