Baby Boomer Retirement? Are You There Yet?

Do you have peace of mind about your bottom line?

How Much Do You Have Saved?

Do you have a retirement plan at all? A 401K? An IRA? A company sponsored Pension Plan? If the answer is yes, are you contributing to them? If you are, are you maximizing your contributions? If you are, congratulations, you are in the minority. If you are not, why not? Do you know, that you could be leaving free money on the table? Yes, I said FREE MONEY. If you have a 401k at work and your employer offers a match, if you are not at least contributing up to the amount required to qualify for the match, you are leaving free money on the table.Retirement Plan Pension Plan

Did you know that contributions to your 401K reduce your taxable income dollar for dollar by the amount contributed? For example if and I will use simple math, if you made $10,000 last year and you contributed $1000 to your 401K, your W-2 would read $9000 in taxable income. What a deal! Now, IRAs don’t give that good of a tax benefit, but if you are not covered by an employer plan, your contributions are tax-deductible up to the contribution limits. In some cases, based on your income, you may be able to contribute to both a 401K and an IRA and/or a Roth IRA and reap the tax benefits. Please consult with your tax adviser.

The Cold Hard Facts

56% of Americans have less than $10,000 saved for retirement. Baby Boomers, those born between 1945 and 1964 are at or nearing retirement. 10,000 baby boomers are turning 65 every day. Over 1/3 of baby boomers have less than $50,000 saved for retirement. 25% of them have already taken money out of retirement accounts for non-retirement expenses and 36% say they will need to do it again. Do you see yourself in these statistics?

Even if you have been socking away money every paycheck, is there a chance you could outlive it? Do you know how much you need? Have you ever met with a CERTIFIED FINANCIAL PLANNER™ and run the numbers? Americans are living longer thanks to advances in healthcare, medicine and technology. We are leading active, younger lives and 60 is the new 40. I remember thinking how much older my parents seemed at the age I am now. How old are your own parents? Do you have longevity in your family? This is some good news!

Now the Not So Good News

We are all facing a silent and growing crisis. Numerous financial studies show that Americans are woefully underestimating their expenses in retirement. These days, retirement is really a life transition, not an end. I always ask my clients, “What age do you want to retire?” They respond more and more, “I don’t intend to retire.” For some, it is more of a necessity than a desire. Some will continue working as long as possible, some will work part-time jobs after they retire from full-time employment.

It should be about enjoying the fruits of all those years of labor and saving for your “golden years.”

Three Myths of Retirement

Myth #1 I’ll Never Retire

Myth #2 I Can Pick the Time

Myth #3 It’s All Golden

At some point you will retire or stop working. Health reasons, your employer will retire you or your will just get be ready to stop or any number of other reasons. I can pick the time. Age 65 was always THE age. The age when we began to draw Social Security. Now we have many choices there. The only thing age 65 triggers now is Medicare. It’s all golden, well I don’t need to explain that one, I have already been citing examples of how off that one is.

However, there is a Silver Lining! If you are one the statistics, that is one of those who do not have enough saved, or have been saving and are looking for a way to stretch those dollars, you have come to the right place.

Annuity 1st was founded to help clients look at effective ways to create a Personal Pension using Fixed Index Annuities. The first step in our process of helping you achieve your retirement goals is to change your mindset. We all think of retirement saving as contributing month after month over several years to the plans I mentioned earlier. But, that is only one part of the puzzle. We also qualify for Social Security through payroll deductions and generally at our full retirement age, we will begin to receive a monthly income stream for the remainder of our lives.Personal Pension Plan

Now, what if our traditional retirement savings, which are likely invested in the markets and subject to market fluctuations, and our Social Security income is still not enough? If I can show you how to get a regular “paycheck” during retirement, one that has the upside potential of the markets, with no downside risk to the principal and lasts a lifetime, would you be interested?

Yes? I can create a Personal Pension using Fixed Index Annuities. Click on the Products tab on my website: Annuity 1st and take a look at the products I represent.

Guaranteed Income for Life

Annuities are not securities, they are not directly invested in the markets. They offer guaranteed income for life, riders can be added that can cover terminal illness, critical care and long-term care among others. Minimum guaranteed interest rates, crediting strategies and participation rates vary depending on the contract. You have many choices when it comes to how you want to structure your Fixed Index Annuity. You will make those choices at the time you write the contract with your licensed agent. Make sure that you thoroughly understand everything about the product before you sign the contract.

Jacqueline Thornhill, CFP® is a CERTIFIED FINANCIAL PLANNER™ and insurance licensed in the State of Nevada only. If you reside in another state, I can refer you to licensed agents in your state of residence. I am not a tax adviser.

I welcome any comments or questions you may have. Please go to the comments area below. I will respond ASAP!

Shortened Disclosure: Full Version is located on Products tab: Fixed Index Annuities

Annuities are issued by American General Life Insurance Company (AGL), or, in New York, by The United States Life Insurance Company in the City of New York (US Life), except the Polaris Platinum Elite and Polaris Choice Elite Variable Annuities and the Power Index Elite index annuity, which are issued by The Variable Annuity Life Insurance Company (VALIC) in all states. Variable annuities are distributed by AIG Capital Services, Inc. (ACS), Member FINRA, 21650 Oxnard St., Suite 750, Woodland Hills, CA 91367-4997, 1-800-445-7862.

 

 

 

2 thoughts on “Baby Boomer Retirement? Are You There Yet?

  1. Hello Jackie ( can I call you in short like that Jacqueline)

    Hmm…I was in the financial field in 2015 for a while, and now I left the field, but I do have some knowledge (my license is still active with The Washington State Office of the Insurance Commissioner). About 401K from companies, I am 100% agree with you that saving in 401K is better than IRA since you can withdraw some money from the 401K account (it might charge some fee) since employers bear the risk for us.

    Oh, fixed index annuity is the very safe choice for seniors who are over 65. However, in the next 5 years from now, it might not enough since we still have the inflation rates. If I were you, I would like to inform them to choose another package as the combination of an annuity and life insurance. One keeps the living expense need and one can grow some money to avoid the inflation and maybe some extra for vacation in summer 🙂

    1. Yes, thank you for the input. Certainly, the combination of products make a very good approach. Been using that strategy for years. My site also promotes, Indexed Universal Life, which has all the benefits of the FIA wrapped in a death benefit package. Of course, as you know, the challenge with life insurance as we get older is attained age and health status in premium calculations. So fortunately, Fixed Index Annuities do not have those issues and many of the newer produces do have inflation riders.

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