hOW TO NEvER RUN OUT OF mONEY WITh YOUR IRAs ANd RETIREmENT AccOUNTSAt the time of this writing, if you have, say $100,000 in retirement ac-
counts, you must withdraw nearly $3,650 or 3.65% of that account at
70 ½. The percentage that you must withdraw continues to increase
through age 100. At age 85, you will take out nearly 7%.
I tell each of my clients they need to begin preparing for retirement any-
where between 1 and 15 years before they turn 70 ½. I warn my clients
of what I call the “Perfect Storm”. This happens more often than you
would imagine, and it’s financially devastating.
WhAt’s the PeRFeCt stoRM?It is a little like running out of gas, then having to push your date to the
station in the pouring rain. Say you have lost a good portion of your IRA
or 401K, like the clients I mentioned earlier. They lost nearly $150,000
of their retirement principal by putting it in risky stocks and invest-
ments. Then, the government came knocking. They had to withdraw
their RMD. At their ages, their RMD was already nearly 5% per year
and was continuing to increase.
I beg you - be careful. There is just too much at risk. The fixed indexed
annuity (FIA) provides a guaranteed stream of income for life with a
contractual guarantee that is issued by a life insurance company.
They may be the best chance of covering the money, without risk, that
is lost due to mandatory required minimum distributions.
A few benefits of the (FIA) hybrid annuity include:
- Preservation of principal and earnings
- Automatically locks in gains
- Never lose money due to a market downturn
- Guaranteed lifetime income and guaranteed death benefit
- Provide a high probability of an inflation hedge
- Effective in all market cycles
- Can be set up as a stretch IRA or multi-generational IRA
Protect your principal as soon as you can in case another financial crash
hits us. You will reach that golden age of 70 ½ in much better spirits,
and with much more money.