It is possible to create a Personal Pension?
Far too many people count on traditional employer pension plans and Social Security to provide retirement income, but those plans are rapidly becoming history or even extinct. What are your other options? Defined contribution plans that focus on helping employees accumulate money for retirement. These plans often leave it to employees to convert those assets into income. So why leave it to what Sally, of Frank chose? This Mutual Fund, and that stock seems okay, and I like the name so I will choose that has become the shocking truth about asset choices in todays workplace. You feel helpless when you get your statement and you have suffered a loss. Why me? Why did this happen to me? Did Frank and Sally lose all that money as well? The answer is yes because they didn’t know enough, didn’t understand enough about what they were investing in.
We want to change all of that and introduce you to our process of creating your own Personal Pension.
Defined contribution plans get their names from the fact that the dollars entering the plan are known or “defined,” but the retirement income they’ll create isn’t stated anywhere, even in the fine print. With these plans, the amount of money available at retirement depends on the performance of the employee’s investments. Just a reminder that your choices are actually investments, not what Frank and Sally though was best. Many people we meet have lost it all and are starting over. There are ways to start over the right way. Not all of the plans below are bad, just the choices people make with them are.
Some of the more common examples of this new generation of plans are:
If you are in a plan listed above, you have contribution limits and limited choices on investment vehicles as options. We suggest strongly in creating another income source and that has no contribution limits, tax deferred growth, and guaranteed income for life. These types of investment vehicles are relatively easy to understand, have yearly income allocation options, and involve compounding of interest to help your account grow. If your plan is under performing and you really don’t understand it, neither do we. We will however introduce you to a plan that is simple, understandable, and guaranteed never to go down. When you account sees a gain, it is locked in and is not subject to market conditions. Any product that has variable in front of the name we do not recommend or offer as part of our service.
We are so busy in our lives that it is sometimes difficult just to keep on living and making ends meet. Trust me, I know as a married man of 22 years with two boys it seemed like every week there was a crisis that cost more and more money. We will meet with you and take a tough love approach to your finances. It is your money, so do what you want to with it, but we will help expose the wants, needs, and must haves. You never know what you are doing wrong until it’s too late. We don’t want that to happen to you or anyone else.
We will help you understand all of your options about creating your own personal pension and leave the choice up to you. We will either make you happy or extremely angry for telling you the truth about what we find. It is ok to be angry with us, that means we did our job in exposing the flaws in your own plan you thought was working. We suggest a fixed indexed annuity for this part of your life where you are 10-15 years away from retirement.
When you’re ready to retire, there’s an easy way to turn the lump sum in your employer plan into a monthly income. This income will be guaranteed to last the rest of your life just like a traditional pension. There are many options and choices so we would be happy to meet with you again.How you ask? By using your plan assets to purchase a guaranteed income annuity or single premium immediate annuity.
Guaranteed income annuities are designed as a way of transforming lump sums into income. Insurance companies offer a variety of income guarantees. For example, you can guarantee income not just for your life, but for the life of your spouse as well, or for a specified amount of time. Ask us about your options.
Whether you convert your entire retirement balance into income,or just a portion, depends on your immediate needs. For starters, retirees should have all of their basic living expenses covered by guaranteed income. Either through an income rider from a fixed indexed annuity, or a conversion from a defined contribution plan into an immediate annuity.
We hope that most will already have at least one source of income: Social Security. There are no guarantees in life and that includes Social Security. Some will receive military retirement pay or a traditional employer pension. If you have a deficit between these income sources and your basic living expenses, you’ll want at least enough guaranteed income to fill the gap.
Moving your money from an employer plan to a guaranteed income annuity is simple. It’s processed just like any other rollover, which means there’s no tax due when you move your assets. There is a 60 day window to enroll into a new plan, so take your time and make the right choice. We are here to show you all of your choices and help educate you on the implications or those choices. Starting a savings plan with a fixed indexed annuity is simple as well. There are so many choices, and so many options so it is best that we meet to discover all of the factors involved. It won’t take up too much time, just about an hour.
For a personal confidential consultation, contact us via phone or email anytime.