Retirement Income Optimization
Where will your retirement income come from? For most people, it will be a mix of qualified retirement plans, Social Security, personal savings, and investments. Everyone dreams of enjoying a comfortable, secure retirement, and as we now live longer, healthier lives, we'll likely spend more time in retirement than in past generations. Once you estimate how much you need for your desired lifestyle, a wise strategy involves assessing all potential income sources with tax considerations to deliver the most value you can enjoy.
Retirement planning shifts the focus from building wealth to managing and distributing it during your spending years. Its importance evolves throughout your life, making it essential to partner with a trusted financial advisor who can help you set clear, achievable goals and adjust your strategy as your circumstances change. As you transition from peak career to pre-retiree, you may want to explore reliable options for your financial future while offering growth potential. Annuities offer retirees the benefit of guaranteed lifetime income, reducing the risk of outliving their savings and providing peace of mind for a comfortable lifestyle. They also allow for tax-deferred growth, helping retirees accumulate wealth and distribute income over time with lower or potentially even zero taxes.
Annuities come in several types, each designed to meet different retirement needs. Fixed annuities offer guaranteed interest rates and predictable income, which is ideal for those seeking stability. Variable annuities allow individuals to invest in various sub-accounts, providing growth potential and carrying market risk. Indexed annuities combine elements of both, offering returns tied to a market index while providing downside protection. One unique feature of annuities is the mortality credit, which enhances the payout to annuity holders who outlive their peers within a group. This credit reflects the pooling of longevity risk, where individuals who pass away earlier effectively subsidize those who live longer, resulting in higher income payments for surviving annuity holders. This concept is exclusive to lifetime income annuities, making them a valuable tool for ensuring consistent income throughout retirement.
How we can help
At Life Stages, we recognize that no two clients are alike on their financial journey to retirement, shaped by their goals, challenges, and life circumstances. We are committed to providing personalized strategies that reflect each client's unique needs. Whether you're focused on growing wealth, protecting assets, or creating a stable income stream, we will guide you along the path to—and through—retirement. Take the first step toward securing your financial future by contacting us today for a personalized consultation. Let us create a strategy to ensure you a joyous and comfortable retirement.