GUARANTEE A SECURE RETIREMENT WITH THE BEST FIXED INDEXED ANNUITY.

Can individual investors beat income annuities?

No. As we approach retirement, we should create guaranteed, lifetime income streams that are protected from loss, guaranteed to never go down – not correlated to the stock market or economic conditions? Individual investors or money managers cannot GUARANTEE zero losses and provide guaranteed income for as long as you live.

Call me today and let me show you how to purchase a guaranteed income annuity that is 100% liquid! At any time, you can terminate the plan and get a full refund of premium*. Don't buy an annuity without calling me first. Surrender charges in some annuities can be severe. The contracts we recommend guarantee you will NEVER lose principal regardless of stock market or economic conditions.

As Life Cycle Financial Planners, we work every day to help our clients with that decision. We are impartial, have no ax to grind and we are not influenced by financial rewards or incentives . Our job is to analyze all the options, all the available information and all of the strategies at your disposal. To best guide us, we rely in large part, on the conclusions from Academia.  The retirement research centers at Stanford, Harvard, Yale and University of Chicago are only a few of the fantastic resources available in the U.S. The best retirement solutions are being studied all over the world - in London, Sydney, Toronto and Israel – all doing great work and publishing white papers about security in retirement. Study after study is conclusive, affirming several key beliefs:

1. Longevity Risk is the #1 threat to financial stability in retirement.
2. Too many people approaching retirement or those currently in retirement are too heavily invested in risky assets.
3. Specially designed longevity annuities should be part of most retirement plans.
4. Individual investors cannot outperform a longevity annuity for guaranteed lifetime income.
5. Having a plan for retirement increases the chances for a better retirement.                                                                                                                               

  What do you think?

This article does a great job taking on this very important question. CLICK HERE to read the complete article from Quartz.com. I have included a few relevant excerpts from the article entitled, “The world’s most reviled financial product may save your retirement”:

“But why not just manage your retirement savings yourself? Invest unwisely or spend too freely, and the money might run out. To be prudent, it’s best to budget for the possibility of living beyond your life expectancy... The odds are that you’ll have less money to spend than an annuity would get you… says Roger Ferguson, a former Federal Reserve governor and current CEO of Teachers Insurance and Annuity Association (TIAA). Ferguson hopes to redeem annuities. The organization’s status and clientele has made it a thought leader on retirement products intended to serve the public good. When Ferguson says he thinks annuities are Americans’ best shot at a secure retirement, it is worth hearing him out.”

One of the key points we teach during our Private Pension educational events is the meaning of ROI in retirement. RELIABLITY OF INCOME is far more important than return on investment, in retirement! TIAA’s Roger Ferguson goes on to say:
            
“The rise of the 401(k) got people thinking about asset accumulation instead of lifetime income,”. He thinks this is a misguided approach and I cannot agree more. Ferguson says, “It’s a chicken and egg problem: Unfortunately, people have negative opinions…[but]buying an annuity, at least to cover the basic expenses that arise during retirement, will become a routine, uncontroversial decision.”

ROI – Reliability of Income, not Return on investment

As individual investors, we simply cannot outperform or out-GUARANTEE the performance of and the security of a Longevity Annuity. To learn more, please contact me. I will prepare a customized analysis for you and share my thoughts and my rationale for why we own these contracts in our retirement plan.best fixed indexed annuity, life insurance concepts, ted bernstein boca raton, ted bernstein insurance, ted bernstein life cycle financial planners, ted bernstein retirement planning, longevity risk,

Email me, Ted Bernstein in Boca Raton, and I will send you a complimentary whitepaper from one of the leading retirement research centers. Or call me at 561-988-8984.

*Minus any disclosed contract fees + investment income.

Longevity Risk - Don't Be Caught Off Guard

The Financial Risks of Living Longer.

Most of us aspire to live a long, healthy and prosperous life. For many of us, that can become a reality only if we are well positioned in retirement.

A staggering 84 percent of Americans consider it important to have guaranteed monthly income in retirement but only 14 percent have purchased a guaranteed income solution that ensures lifetime income. 

The financial downside of living longer is the increased risk of outliving your wealth – referred to as longevity risk.  Recent studies confirm this to be a major concern for millions of Americans.

“We are living longer and leading healthier lives compared to just 20 years ago”, says the American Journal of Public Health. If you are 65 today and healthy, your life expectancy is near 90, another 18 to 20 years.

For many, living longer than planned may become the single most important financial issue in their future. Twenty-five years ago, the idea of living past 80 was remote and that is important to understand why so many baby boomers and people already in retirement have been caught off guard about longevity risk. Having a financial plan to age 90 was not a priority when living to age 90 seemed unrealistic.

Managing Longevity Risk.

Ideally, you need a guaranteed, lifetime income stream that pays you for as long as you are alive, regardless of anything - stock market conditions, interest rates, inflation or another Bernie Madoff. You cannot outlive this retirement paycheck if structured properly. Too many people in or near retirement are invested too heavily in the stock market, creating a real threat to their nest eggs when the market has a normal correction. By re-balancing your portfolio, you can achieve security for life with safeguards against the most common threats.

The goal is to convert a portion of your accumulated investments, including your IRA, into guaranteed income that is paid by insurance companies over your lifetime.  Working with an experienced retirement and life cycle planner will ensure that your heirs will receive unused principal. Using specially designed longevity annuities, 100% of your investment should be liquid from day one while the principal is growing on a tax deferred basis.

According to Professor Roger Ibbotsen from Yale:

"Investors should be willing to pay an insurance premium to hedge away the longevity risk."

You need a guaranteed income solution if you are:

·        At or near retirement.

·        Concerned about outliving current assets.

·        Concerned about spouse’s well-being upon your death.

·        Invested heavily in bonds, stocks or real estate.

·        In need of guaranteed lifetime income.

·        Concerned about losing investment control if health is compromised.

·        Do not have a retirement or longevity risk planner.

A Private Pension - How it Works.

A 65 year old woman purchases a longevity annuity for a lump-sum of $500,000. In exchange, it will provide a guaranteed income stream of $39,762, beginning at age 70. If she defers taking the income until she reaches 73, the payments jump to $51,494.  The longer you wait for the payouts, the higher they will be once you "flip the income switch within the contract".

From 73 to 90, she will receive $875,398, guaranteed. The same investment in bonds earning 4% will have been exhausted to Zero (see below). If she lives to 95, her guaranteed payments will total $1,132,868. 

There is no principal risk. A longevity annuity is designed using indexing strategies. Simply put, this means that there is a guaranteed floor of 0% and maximum rate on the upside. When the market is up, the annuity will capture some of the gains and when the market is down, there will be NO LOSSES and that is guaranteed.

Return of Premium - I recommend contracts that are 100% liquid from day one (minus any disclosed contract fees). With this special guarantee in place, you are protected from unforseen events or a bad decision. With all of your capital GUARANTEED and LIQUID, 

Longevity Annuity vs. Bonds?

There is no other investment that guarantees income for life. Only very strong, well capitalized insurance companies can do this. 

Let's compare. If that 65 year old woman invests the same $500,000 at a 2% rate and begins to withdraw $39,762 per year, she will run out of money at age 85, well before life expectancy.

At 4%, she will run out of money at age 90.

With life expectancy continuing to increase, it is wise to adjust your retirement plan accordingly. An advisor who is experienced in retirement and longevity planning will prove to be invaluable? As retirement becomes more of a reality, we will become the most important advisor on your team.

Email Ted Bernstein or call 561-988-8984.