Wealth Management Resources
Geoffrey Johnson, RICP
Financial Advisor

CONNECT

Address:

1820 E. Ray Road, Suite A110
Chandler, AZ 85225

Phone:

602-334-4428

Fax/Other:

877-604-8337

Don't Let the Sunset On Your Retirement!

 

Outliving Your Assets is the number one fear among those that are retired or planning for retirement according to recent studies.

Retirees watched in horror as their account balances plunged along with the stock market now face a new challenge: How do they generate enough income to pay their bills?

 A widely accepted rule of thumb suggested that if you limit your initial withdrawals to 4% of your nest egg and increase it by 3% in each of the following years to keep up with inflation, you should be able to maintain your lifestyle over a 30-year retirement period. However, given that we are coming off the worse decade in history for our stock market, for many even that strategy has proven unsuccessful and in fact put you in jeopardy of outliving your assets.

A Personal Pension Annuity:

Many people looked at the old definition of annuities as an income for life, thereby insuring that you had an income stream for all of your retirement years. But essentially that was another way of saying you had a pension.

Defined Pension Plans have largely gone away. Employers have shifted from guaranteed retirement income options, to defined employee contribution plans such as a 401k. Responsibility for managing retirement savings has shifted from the employer to the individual. In today's up-and-down markets, investors are beginning to come to the realization that they may outlive their hard earned retirement dollars. So where does a retiree turn?

An Income for Life:

There is, however, another way to stretch your income and increase your annual withdrawals to 8% or more of your savings. And you can be assured you won’t outlive your money A study by the University of Pennsylvania's Wharton Financial Institutions Center found that by purchasing an personal-pension type annuity, you could create a stream of secure lifetime income for 25% to 40% less than it would take to generate the same income from a traditional portfolio of stocks, bonds and cash using the 4% withdrawal rule.

Is there a way to set up your own Personal Pension? Good news, now you can! Retirees now have the option of setting up a personal pension that can guarantee income for life.

One of the most misunderstood aspects of annuities is their ability to produce a lifetime income stream. Today, there are multiply methods to accomplish this and only after a careful analysis will you know if one is right for you

Contact us today, and with our expert advice we will show you how to set up your own personal pension, and ensure your retirement income lasts as long as you do. Sound like a no brainer? We’ll help you get started.  *

https://www.bankrate.com/finance/retirement/pensions-decline-as-401-k-plans-multiply-1.aspx

 

**An annuity is a contract between a contract owner and an insurance company and is designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries.  Guarantees are based on the financial strength and claims-paying ability of the issuing insurance company.  They also include surrender free withdrawals, potential for tax deferral, and flexible income options including lifetime income.  Any distributions are subject to ordinary income tax and, if taken prior to age 59 ½, a 10% federal tax penalty.

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck