Retirement Solutions
An annuity is a contract you sign with a life insurance company. Under the terms of this contract, you make a lump-sum payment to the insurer or monthly contributions.
In return for this one-time payment, you receive a guaranteed income stream (like a pension) payable for a specified period or as long as you live. Depending on the type of annuity you choose, the payments may continue to your spouse or other beneficiary after your death.
The actual monthly income you receive from your annuity will depend on a number of factors, including:
Indexed universal life insurance is a specific type of universal life insurance that offers lifetime protection and flexible features. It provides the potential for cash value growth linked to specific market indices, subject to caps and floors.
It makes it great option to accumulate saving due to market risk protection and tax advantages.
Is indexed universal life the right policy for you?
Indexed universal life insurance is for people who need lifetime protection, flexible features and potential cash value accumulation to help meet their financial needs for the future.
IUL could be the right policy for you if you want:
During the accumulation phase, this is the time in which we are contributing to a Retirement saving account/s, here is where our money is earning interest and accumulating.
The 2nd stage occurs once you are approaching retirement.
Factors to consider Tax Planning- Which of your accounts are taxable, are you subject to State income tax, what your current tax rate is.
The Distribution Plan is key, depending on the accounts that you have has a great impact on how you start taking distributions.
COMMON FACTORS AFFECTING RETIREMENT INCOME
LONG-TERM CARE EXPENSES
Long-Term Care costs can be significant and prolonged since people are now living longer. When physical or mental disabilities inhibit your ability to perform basic tasks, you’ll need Long-Term Care (LTC).
The costs of LTC can harm your retirement income and savings. Although you might not need LTC, it’s an important consideration because of the potentially high cost, should you end up needing it. LTC insurance can be a beneficial asset. If you purchase this type of insurance, you’ll need to consider the premium cost when considering your retirement income needs.
TAXES
Taxes can significantly cut into your income and reduce the number of funds that you’ll have available to you in retirement.
Understanding how taxes affect your investments is crucial for a successful retirement plan. Interest, and some other income, are taxed according to regular income tax rates. Others, like long-term capital gains, benefit from lower maximum tax rates. Finally, certain municipal bonds and other investments generate income that is exempt from federal income tax.
If your savings and/or retirement income comes from pensions, 401(k)s, traditional IRAs, or other tax-qualified accounts, it is subject to income taxes. Don’t forget to calculate taxes into your retirement projections for more accurate estimates.
HAVE YOU PLANNED FOR THESE FACTORS?
Many factors affect your retirement income and savings. Although you have undoubtedly dealt with these factors during employment, their presence could be more noticeable since you’ll be depending on savings as a large portion of your income.
LEARN HOW YOU CAN MAKE THE MOST OUT OF YOUR MONEY IN RETIREMENT.
"Financial Independence is the ability to live from the income of your own personal resources"
-Jim Rohn-
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