Together with your financial professional, you can create a guaranteed income stream to cover your essential expenses for life so your basic needs will always be covered. Examples of guaranteed income include Social Security, pensions, and annuities. You can also develop a financial strategy to help enhance the discretionary income you spend on travel, entertainment, college funding, or a big event such as a wedding. And the process can help you fulfill your legacy wishes such as leaving money behind for your family or donating to a charity you care about.
With an annuity as part of your income strategy, you can work toward your long-term retirement goals by taking advantage of tax-deferred growth potential, a death benefit during the accumulation phase, and a guaranteed stream of income at retirement. Keep in mind, annuity guarantees are backed by the financial strength and claims paying ability of the issuing company.
You should carefully consider the features, benefits, limitations, risks, and fees that may be associated with an annuity, as well as the expenses, investment risk, and objectives of the underlying investment options in a variable annuity.
Variable annuities are subject to investment risk, including possible loss of principal. Investment returns and principal value will fluctuate with market conditions so that units, upon distribution, may be worth more or less than the original cost.
Variable annuities offer optional benefits, or “retirement strategies,” that can help protect you in several ways:
- Income benefits – which provides the potential to help protect, and potentially grow, your income that’s guaranteed for life
- Death benefits – which may provide help for loved ones after you’re gone.
Certain annuity features are provided through riders that are optional and available for an additional cost.
As you can see, there are new ways of thinking with new strategies needed to help make your retirement savings last as long as you do. To start the Value of Income Planning process:
- Download the Value of Income Planning client brochure
- Gather key financial information including your retirement income analysis worksheet
- Make an appointment with your financial professional
- Collaborate on ways to enhance Social Security benefits
- Create an income strategy that can help meet your income needs in retirement