WARNING: mINImIZING RISk cAN lEAd TO A GOOd NIGhT’S SlEEP & PEAcE OF mINd- MItIgAte InFlAtIon AnD longevItY RIsk
Proper planning will help you design a guaranteed retirement income
strategy, which incorporates insurance and annuity vehicles to create op-
portunities for long-term growth as well as guarantee income through-
out your retirement. A base, a foundation, a guarantee that you can count
on is not only the basis of true diversification, but it also takes inflation
and longevity risk out of equation. Many Fixed Index Annuities offer
an Income Rider which guarantees growth rate, followed by an income
stream for life; and unlike having to ‘annuitize’ the annuity, if there is
money left in the account when the policyholder passes, it will pass on
to the named beneficiary. Be sure to understand all the terms and condi-
tions, as every annuity works differently. When it comes to fixed insur-
ance products, the right annuity or life insurance product when used the
right way can be an amazing retirement or Estate Planning tool. The
wrong annuity used any which way can be a disaster. Those are typi-
cally the horror stories you read about in the paper or magazines. Be
sure your advisor is independent, not working for any one company, so
they can shop the marketplace to find you the best investment or product
for your retirement needs.
- WeAlth ACCUMUlAtIon AnD PReMIUM FInAnCIng
Given lessons learned in stock market investing, it is important to re-
member that more conservative retirement strategies, which typically
have assets invested in the stock market, yield a smaller percentage.
Other allocations should be set aside in proper life insurance planning
which can include wealth accumulation and tax advantages, both for
today and for retirement.
Business owners especially have an opportunity to meet certain business
obligations such as Buy-Sell Agreement funding, Key Man or Golden
Handcuff policies, even Non-Qualified Deferred Compensation Plans,
to help fund their retirement, simultaneously saving them thousands of
dollars. For wealthier families with $7 million and up or people who
have most of their assets tied up in Real Estate or are heavily invested in
the stock market, there is Premium Financing. A bank or Private Lender
pays the premiums on their policy to help them get the Estate Planning,
Business Planning, or Wealth-Accumulation-type policy that is needed.
In return, the lender charges an interest rate and has first claim on their
policy. This type of planning is very sophisticated and every deal is