Retirement planning can be difficult, but insurance and financial products can help give you peace of mind for the future. Remember, even if you have Life insurance or retirement options through work, it may still not be enough. Whatever your goals, they probably depend on a reliable source of income. Our agents can help you to define your goals, identify your priorities, and then build a strategy that’s best for your family!
Traditional IRAs are a great way to save pre-tax dollars and can be deductible or nondeductible. Roth IRAs offer more flexibility for withdrawal before you retire. Unlike traditional accounts, Roth IRA contributions are subject to income limits and aren’t tax-deductible. However, any withdrawn earnings are tax free if you are at least 59 1/2 and your account has been open for at least five years. Rollover IRAs let you combine retirement contributions in a single account after you’ve worked for multiple different companies. If you’re a business owner or self-employed a SEP IRA is a great option! It allows for higher contributions and deductions from personal income!
Retirement can be a scary idea. You might worry about inflation, giving up a steady paycheck, or outliving your savings. Variable annuities can help retirees manage their expenses with a guaranteed monthly income stream! You can also structure these accounts so that they provide a guaranteed income for life or a set amount of years that you choose. Additionally, some variable annuities allow the policyholder to choose a living benefit. This can provide built-in inflation protection by increasing the rate of return each year or by using a return rate pegged to the inflation index. However, it’s important to note that a living benefit will also likely come with additional fees or restrictions. If you’re looking to leave a legacy, you can choose an annuity with a guaranteed death benefit.
Mutual funds provide a wide variety of investment options and professional management, two very big advantages. This type of account allows you to choose funds that can spread out your risk across hundreds of stocks or bonds. A target-date mutual fund is a great option for college funds! Over time, the investment allocations change inn order to meet the fund’s objectives at the specific time you have designated. If you’re looking to build up a cash reserve, you can consider a money market fund. They usually offer better yields than a traditional savings account, but also come with higher risk.
Universal Life Insurance
If you don’t get enough coverage from work and you’re looking for some flexibility, universal Life insurance may be the solution for you. Because universal Life policies are permanent insurance, they stay in force as long as the premium is paid. A variable universal Life policy lets you invest a portion into mutual fund-like sub accounts. This flexibility to invest allows the accumulation of tax-advantaged contract value, that can then be added on top of the death benefit. Additionally, insureds also have the ability to borrow against their policy’s cash value or make partial withdrawals. However, it’s important to know that loans and withdrawals reduce the cash value and payable benefit. If your policy lapses with an outstanding loan, it will be viewed as a distribution and may be taxable.