Henry Monahan |
May 18, 2016 |
CDs, Fixed Annuities
A co-worker once told me the CD didn’t stand for certificate of deposit anymore, it stood for certificate of disappointment. For the past 7 years, the United States has been in a historically low interest rate environment. For many retirees, who are accustomed to supplementing their income with their certificate of deposit interest, the lower interest rates made it necessary to look elsewhere for safe income while protecting principal. As of April 22, 2016, the most competitive 5-year CD rates were around 2.1% to 2.2%....
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John Gill |
May 17, 2016 |
Income For Life, Retirement Planning, Your Retirement
A mere six years after one of the most devastating recessions (2008) in U.S. history, which destroyed many Americans’ retirement plans, I frequently saw new clients who had forgotten about the losses their portfolios took during the early 2000s. I believe it’s important not to forget what a 20, 30, or 40 percent loss feels like in your portfolio. Why? Because another market loss can easily occur during your retirement years. When you enter retirement and begin withdrawing income to live on and not simply...
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Sam Liang |
April 26, 2016 |
Annuity Basics, Social Security, Your Retirement
The Social Security Administration (SSA) can’t help you with your Social Security benefits. That sounds funny, I know, but they can’t. What I mean is that they can’t help you put a plan in place to maximize your benefits. An article in last year’s Wall Street Journal said it best: “The Social Security isn’t your financial advisor.”1 Everyday, 182,000 people visit an SSA office. They field 445,000 phone calls daily. In 2014, they received 17 million applications just for new and replacement cards. 59 million...
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Sam Liang |
April 18, 2016 |
Retirement Planning, RMDs, Withdrawal Charges, Your Retirement
I know — RMDs don’t actually stand for that. They stand for Required Minimum Distributions. Many over age 70 ½ know what they are — it’s when the IRS requires you to take a withdrawal from your IRA accounts then are taxed on it. RMDs are calculated by dividing the total balance of your IRAs, employer sponsored plans (401k, 403b, etc.), and IRA based plans (SEP, Simple IRA, etc.) at the end of the previous year by the distribution period that correlates with your current...
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Sam Liang |
April 15, 2016 |
Retirement Planning, Your Retirement
Math is a funny thing, especially when it comes to averages. Let me show you what I mean. Let’s assume you have $100,000. The first year it gains 10% and the second year it loses 10%. Your average return is 0%, right? We add 10, then subtract 10, then divide by 2 years. That’s an average of 0%. But, you’ve actually lost money in this scenario, and here’s how. Start with $100,000. Say you gain 10% the first year, so now you have $110,000. Then you lose 10% of the...
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Ash Toumayants |
April 13, 2016 |
Annuities vs bonds, Bonds, financial advisor, Your Retirement
Senator Rob Portman recently revealed that about 10,000 baby boomers hit retirement each day. The typical retirement age is 65. This is the time when most retirees experience confusion. The employment that was a haven for income flow ceases. As such, investment advisors and consultants have recently found themselves answering questions regarding the best financial instruments and schemes to adopt for investment. One question many ask is — between annuity and bonds, which would be a better source of income for a baby boomer? Before...
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Mark Melkowski |
March 28, 2016 |
financial advisor, Retirement Planning, Your Retirement
When my son was 10 years old, he needed heart surgery. We understood the risks to his health and the dangers associated with the procedure. So, we decided to look for a second opinion. Luckily, our doctor was very helpful and referred us to a doctor well versed in these types of surgeries. For some reason, few of us ask for second opinions on our financial situations. Most of the time, this occurs because we are friends with our financial advisor and/or we don’t want...
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Steve Feeken |
March 18, 2016 |
diversified portfolio, Income For Life, Index Annuities
The common rule of thumb many advisors use, for determining the adequate amount of income to withdraw from your retirement savings, is known as the 4% rule. It simply states that if you withdraw 4% income per year from a diversified portfolio and adjust periodically for inflation, you should have enough income to last your lifetime. This theory claims that market growth should outpace the income withdrawn and also offset periods of market decline to sustain your portfolio. Becoming popular in the early 1990s as...
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Dolph Janis |
March 8, 2016 |
Income For Life, Retirement Planning, Your Retirement
Have you ever awoken at night and started worrying about running out of money when you’re in or entering retirement? Does the fear of losing what you have saved for retirement due to changing markets concern you? If so, you’re not alone. A large number of baby boomers have this feeling on a daily basis. I have been working with clients for over 11 years, and these concerns are brought up in just about every meeting or conversation I have with clients. When looking at...
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Brian Jones |
February 26, 2016 |
Fixed Annuities, Income For Life, Income Riders, Retirement Planning, Social Security, Your Retirement
For most of us, it’s very important to have an income or some type of cash flow during retirement, especially if you want to enjoy your retirement years. But how do you plan for this income and where does it come from? For most of us, Social Security is the first source that comes to mind. Yes, I do believe Social Security will be around in some form or fashion for most of us as one of our retirement income sources. If you are one...
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