UNEXPECTED CO$TS OF RETIREMENT
Question: How much retirement income will you need? Answer: Probably more than you think…
While in theory, this does in fact sound great, Saturdays can be expensive – and most people tend to underestimate just how expensive 365 Saturdays will actually be. Consequently, when people retire, they are often surprised to find that instead of their annual expenses decreasing as they had anticipated, they INCREASE!
Of course, some of these expenses can be planned for, or modified to fit your budget. But, what happens if your income takes a H.I.T.? That stands for…
These 3 little words can be 3 BIG reasons why, over time, your retirement income may not go as far as you think.
We know as people get older, their healthcare needs increase. What’s more, the COST of medical care has also been on the rise – a nearly 75% increase during the last decade alone. Yet, the rising cost of healthcare isn’t all we have to worry about. Historically, the general inflation rate for goods and services has been about 3% per year. And, although 3% may not seem like much, years of inflation at this seemingly small rate can SIGNIFICANTLY lower your purchasing power.
How significantly? Well, if you had received the same amount of income every year for the last 25 years, today that income would buy less than half of what it used to. Finally, to top it all off, there’s also the possibility of higher taxes in the future. And, not just higher Federal taxes, but higher state and local taxes as well.
Your income can be negatively affected by all of these unexpected costs of retirement. And, this doesn’t take into account the big R – for RISK. So, while we can’t know exactly how much income you’ll NEED in retirement, we can tell you this: Even if you’re starting with what seems like a substantial annual income, these unpredictable rising costs, the H.I.T., could quickly chip away your purchasing power and lower your standard of living. Furthermore, if your retirement income is still subject to risk, a H.I.T. isn’t the only threat you need to worry about.
That’s why, to help with your plans for a comfortable retirement, you may want to consider a solution, like an annuity. Annuities are designed to meet long-term needs for retirement income. Whatever else you may have invested in, whether bank accounts or market alternatives, please keep in mind that an Indexed Annuities has the potential to guarantee you a dignified, happy and worry-free retirement – a retirement in which you can never run out of money. Ask yourself a few simple questions:
Did you lose money in the world financial crisis of 2008?
Are you concerned about potential losses in the future?
Have you locked in the gains made over the past 9 years?
If you answered yes to the first two questions and no to the last, you probably need to consider starting, or adding to, an Indexed Annuity.
Those of you who already own Indexed Annuities know that all gains added to your account each year are real gains – real money that can never be lost due to future market downturns. So, you have performance when you want it and protection when you need it. We call that a perfectly balanced investment. One that provides that extremely elusive Peace of Mind that we all cherish.
Best of all, regardless of how the markets perform, you always have a guaranteed lifetime income stream, as well as long-term care benefits that bank or market strategies simply cannot offer. Therefore, not only do Indexed Annuities provide safe accumulation of assets, they also provide safe and guaranteed distribution of these assets when income is needed.
Are you prepared for a H.I.T. or a loss to your retirement resources? Is your retirement income guaranteed to last as long you do? If you own an Indexed Annuity, the answer is yes; and if you don’t, then it’s time to reevaluate your retirement plan. Let us help you prepare for the unexpected costs of retirement, so if the H.I.T. comes, you’ll be ready for it!
Please contact us soon if you would like more information about how an Indexed Annuity can protect you from the Unexpected Costs of Retirement. Even if you already own one or more, it is probably time for a review. I look forward to seeing you soon!
This information is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
Investment advisory services provided by Cornerstone Securities, LLC