Archive for January, 2012

The U.S. Government Accountability Office Recommends Income Annuity as a Retirement Income Option

Tuesday, January 24th, 2012

In a U.S. Government Accountability Office (GAO) report, Ensuring Income Throughout Retirement Requires Difficult Choices, financial experts recommend buying an immediate annuity to supplement your retirement income. While Social Security continues to be the primary source of fixed income in retirement, it fails to meet all of the financial needs of retirees. Other contributing factors in the growing importance of income annuities include:

  • The shift from employer-sponsored defined benefit pension plans to defined contribution plans
  • Increasing life expectancies
  • Retirees are being forced to assume more responsibility for managing their savings to ensure that they have sufficient income throughout retirement

An income annuity is a wonderful alternative to self-managing savings, offering a steady source of income that retirees will not outlive. Other benefits of income annuities include:

  • Help protect retirees against the risk of underperforming investments
  • Help protect retirees against the risk of outliving their savings (longevity risk)
  • Help relieve retirees of the task of managing their investments at older ages when their capacity to do so may be diminished, and
  • Provide a base of guaranteed income that may serve as a dependable “cushion” for retirees

Still, income annuities are not for everyone. Consult a financial adviser to find out if an immediate annuity makes sense for you.

If you have any questions about what you have just read, or if you would like to know more about annuities and retirement planning, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

GAO Report Suggests Annuities as Retirement Income Option

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Posted in Annuity Planning, Financial Advice, Financial Planning, Immediate Annuities, Income Annuities, Planning for Retirement, Retirement Advice, Retirement Income Planning | 1 Comment »

The Benefits of Annuities

Friday, January 20th, 2012

Both fixed rate annuities and variable rate annuities share several common benefits. These benefits include:

Annuities are Ideal for Estate Planning: Upon your death, the proceeds of your annuity pass directly to your beneficiaries without delays or hidden fees.

Annuities are Tax Deferred: Thanks to this annuity tax deferral, you only pay taxes on earnings when you withdraw your annuity’s gains.

Annuities have No Contribution Limits: Unlike 401 (k)s and Individual Retirement Accounts, which are limited, annuities allow you to contribute as much as you want (up to the limits imposed by the insurer).

Annuities have Flexible Payment Options: 401 (k)s and IRAs require you to begin withdrawals at the age of 70 1/2. Annuities offer more flexibility through the following payment methods:

•      Lump Sum distribution (one-time payment)

•      Periodic distributions (withdraw money when you need it)

•      Systematic distributions (a fixed or variable amount is withdrawn at regular intervals)

•      Annuitization (fixed or variable payments, guaranteed for the rest of your life)

Annuities and Tax Control: Annuities are made up of two parts: principal and earnings. As long as you open your annuity with after-tax dollars, only your earnings are taxable.

Annuities are Easy To Start and Maintain: An application, a check, and a signature is all that stands between you and the beginning of your retirement savings.

Additional Annuity Benefits: These include:

•      Annuities do not offset Social Security benefits.

•      Annuities are easy to establish and often come with a “free look period.”

•      You can exchange older, non-performing annuities into a newer fixed annuity with no tax consequences.

If you have any questions about what you have just read, or if you would like to know more about annuities and retirement planning, consult a financial advisor like Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

Annuities: Common Benefits

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Posted in Annuity Planning, Financial Advice, Financial Planning, Planning for Retirement, Retirement Advice, Retirement Income Planning | Comments Off

The Purpose of IRA Legacy Planning

Thursday, January 12th, 2012

Protecting and preserving your retirement savings is just one of the many crucial aspects that go into planning for retirement. If handled properly, an IRA can sustain you throughout retirement and provide a significant inheritance for your loved ones or favorite charity. If not handled properly, your beneficiaries could end up losing as much as 80% of your retirement savings to taxes.

There is a solution – IRA Legacy Planning.

This important retirement planning strategy helps secure how you will pass along your hard-earned savings. IRA Legacy Planning ensures that your IRAs and other qualified plans are properly incorporated into your estate plan.

Benefits of IRA Legacy Planning

•      Increase the extent and validity of your retirement savings

•      Minimize taxes on the transference of your retirement savings

•      Provide a significant inheritance for your loved ones

•      Ensure the “Stretch IRA”

•      Avoid common mistakes that could result in unnecessary taxes and loss of assets

•      Communicate instructions to beneficiaries upon your passing

If you have any questions about what you have just read, or if you would like to know more about IRA Legacy and retirement planning, consult a financial advisor like Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

IRA Legacy Planning: Protecting Your Life Savings

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Posted in Financial Advice, Financial Planning, Maryland IRA Legacy Planning Services, Planning for Retirement, Retirement Advice, Retirement Income Planning, Roth IRA, Traditional IRA | Comments Off

Why You Need Life Insurance

Friday, January 6th, 2012

If you ask any financial adviser, they are sure to tell you that life insurance is the foundation of any sound financial plan. It is also an important financial tool for all of the following reasons, as well.

Pay Final Expenses: Without life insurance, your final expenses represent a tremendous financial burden for your loved ones. With life insurance, your funeral, burial, probate, debts, and medical expenses are covered.

Create an Inheritance: Even if you have no other assets to pass on to your loved ones, you can create an inheritance by purchasing a life insurance policy and naming them as beneficiaries.

Replace Income for Dependents: Does your family rely on you as its primary source of income? If so, what happens if you pass away suddenly? Life insurance can help replace that income if you die.

Pay Federal and State “Death” Taxes: Life insurance benefits will cover estate taxes.

Create a Source of Savings: Purchasing a cash-value life insurance policy can create a type of “forced” savings plan. And the interest credited is tax deferred (tax exempt if the money us paid as a death claim).

So why haven’t you purchased a Life Insurance Policy yet?

To ensure that you are making wise retirement decisions, consult a financial adviser, like Safe Retirement Solutions. Safe Retirement Solutions is your full service, independent financial advisory firm dedicated to providing you with the very best in retirement income planning.

If you have any questions about what you have just read, or if you would like to know more about retirement planning, consult a financial advisor like Safe Retirement Solutions by calling 877-268-4086 or visit our website today!

We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.

You can also follow Safe Retirement Solutions on Facebook and Twitter.

Sources:

Why should I buy life insurance? Insurance Information Institute

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Posted in Financial Advice, Financial Planning, Life Insurance Maryland, Planning for Retirement, Retirement Advice, Retirement Income Planning | Comments Off