I’ve been asked to explain how the dollar amount of what someone receives in social security is impacted by their age at filing for SS. This week’s article does that. It tells us “One of the most important factors affecting your retirement security is how long you work. Additional years make it easier to increase annual Social Security benefits through delayed filing: Filing at the earliest age (62) gets you 75 percent of your annual full benefit; every 12 months of delay past your full retirement age (currently around 66, depending on your year of birth) gets you an additional 8 percent until you turn 70. Working longer also can mean saving more, living off those savings for fewer years and getting more years of employer-subsidized health insurance”. Let us know if you need help in applying these formulas to your personal situation to determine how much additional income you may need to help you live out a more stress-free retirement. There are products that can provide additional income that you may not know about. Call us, we’re always here for you.
J.P. Morgan’s chief global strategist David Kelley recently gave a speech concerning there still being a long way to go before the US has a full economic recovery and it is “therefore wise for investors to be cautious.” “He compared the current situation to when he used to drive to New York from Massachusetts. It’s only about a four-hour drive in theory, but it always takes longer, he noted. That is because you’ll be “speeding along the highway, but you always know by the time you get to Bridgeport, Connecticut,” you hit traffic, so you try to avoid the traffic by taking the side roads, he recalled, adding: “Eventually you do get there — it’s just much slower going.” He said that “When you take the back roads, there are lots of twists and turns and the bottom line is that that makes it very difficult to see what is ahead, and speeding on a back road … will get you into trouble.” It may be time to think of ways of generating income in your portfolio without materially adding to your overall volatility. Call us, we can tell you about a product that protects your principal when the market goes down, and also guarantees income for life. We’re always here to help.
Considering all that is going on today, “pre-retirees may be asking questions about the impact of a stock market sell-off on their retirement savings”, and if there are “any steps that can be taken to protect savings and investments against future volatility.” This week’s article tells us “it’s a sobering reminder that volatility can strike at any time” and “it’s still important to protect your retirement portfolio against those lows.” Pre-retirees can work “to diversify their portfolio in a way that distributes risk” and “it’s even possible to build in some principal protection with the inclusion of insurance products that guarantee income.” How can that be, you might ask, someone has to incur the loss of market downturns. Here, with FIA’s “the insurance company absorbs the risk of market downturns, guaranteeing a minimum floor, and protecting contract holders from market losses.” If this is of interest to you, or you think that you would benefit from principal protection and income for life, call us. We’re always here to help.
This week’s article discusses a type of “retirement plan” that some Americans who have had their retirement savings wiped out by COVID are engaging in, and that plan simply involves moving in with their millennial children. Instead, if you are looking to shore up your retirement savings with products where your principal is protected from market declines, and that can provide you with a guaranteed income you can’t outlive, call us. We’re always here to help.
This week’s article helps explain why the “economic gut punch of the COVID-19 pandemic is being felt by retirees.” “With the U.S. economy staring at a recession and the stock market having plunged more than 25% from its peak in February, retirees have seen the value of their retirement funds badly eroded and are looking for ways to generate cash for their living expenses.” Call us if you are trying to regain your footing. We may have some ideas that can help in situations like this. We’re always here to help.
Insurance takes many forms, from covering our homes to our lives, and one form of insurance that we have received many questions on over the past few months relates to Life Insurance. This week’s article tells us that when a study was conducted in 2018 “Half of all consumers say they are more likely to purchase life insurance if priced without a physical examination.” There are pros and cons to different types of Life Insurance coverage. Call us if you have any questions about what you own, or would like to discuss what you believe your needs are. We are aware of options that will likely serve your purpose, and also help you during your retirement years.
We speak a lot about annuities and are often asked to describe the type of person who benefits from owning one. In responding, we often say they benefit both “the Builder” and “the Protector”. A Builder can be described as the person nearing retirement, concerned about risk exposure, and someone wanting growth opportunities. A Protector can be described as the person entering retirement, wanting supplemental income, and looking for flexibility. So we ask you, are you a Builder or a Protector? Call us, we’re always here to help explain more about options that will help you fulfill your goals regardless of where you are in your retirement planning.
The approach to retirement is a balancing act between growing and protecting assets. In general, the closer we get to taking retirement income, the more the balance tends to shift toward protecting years of hard-earned dollars. That balance may be more relevant now than ever. Call us if you’d like to discuss what options you have where your principal is protected and your risk is lower. We’re always here to help.
We’re being told the reopening process is being done with “tremendous gusto and vigor,” but have we forgotten how to join in and left our gusto by the wayside? The dictionary tells us that we can do many things with gusto, or hearty enthusiasm, whether it’s playing a game or cheering someone on. Since the 17th century gusto has been helping speakers describe things that are done with vigor and enthusiasm. The doors are opening, slowly but surely. Maybe it’s time to go out and eat a steak with ‘gusto’ and get the flavor of life back again.
I, like most of you, become very discouraged when I look at the number of unemployed workers, especially because I know that the older we are, the less likely we will be rehired. As this week’s article reminds us, “if older workers cannot get rehired, they start to drain their savings sooner than expected and claim Social Security benefits a lot sooner than they wanted. And we know what that means.” “Collecting Social Security at age 62 instead of full retirement age reduces lifelong benefits by over 30%.” There are things you can do to maneuver through the crisis. Call us, we’re always here to help and we have some ideas you may not have thought about.
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