How To Beat The Extinction Of The Pension!

Out With The Old And In With The New

In previous emails, we discussed the impact that 10,000 baby boomers retiring every day may have on your retirement if you invest everything in the market. As a quick reminder, the influx of money into the market by baby boomers’ investments in mutual funds and 401k)s and IRAs starting in the mid 70’s resulted in a major bull market of 1000% growth over approximately 20 years. This is why everyone made lots of money in the market in the 80s and 90s. Now the baby boomers are retiring and taking lots of money out of the market to live on. This will have the opposite effect and we will be seeing the normal ebbs and flows of the market with much lower returns. We may even have the extreme volatility of the last 12 years indefinitely. We may even have numerous market crashes similar to those of 2000 and 2008 nobody knows. To be sure, we are in a major bear market, which probably will last for a number of years still.

I am not opposed to investing some money in the market. However, it is extremely important for every retiree have a portion of their money in a secure and protected SAVINGS VEHICLE, that will produce guaranteed* income for life, BEFORE investing any money into the market.

There are a lot of important factors to consider in retirement that you may not have considered before, because you were younger and it didn’t have as much meaning and relevance to your

life as it does now. That’s okay. However, the sooner you start, the better prepared you will be for retirement and you may be able to start making your retirement vision a reality. Fill out this short survey now to get started!

In retirement, we have to take into consideration the following:
1) People are living longer
2) Pensions are increasingly rare
3) The stock market could continue to be volatile and erratic

Because of those three things, we need to start following the NEW edition of the “retirement rulebook” and trash the old one, because the old one isn’t going to give retirees of today what it gave the retirees of yesterday.

Out With The Old And In With The New!

To put it simply, retirees today should focus on a SAVINGS plan that can cover future expenses no matter what. They should not just focus on Investment and how they can maximize their returns. The Investment mindset will not give retirees that guaranteed* income, that they will definitely need, that a savings vehicle can.

So, let’s break this down and first focus on number one and two in the list above.

It’s not a problem that people are living longer, but it becomes a problem for retirees if they live longer than their savings last. It becomes a problem if they depend on OLD retirement-planning rules, such as the Four-percent rule that assumes that you can support your retirement “safely” by withdrawing 4% out of your portfolio annually. I put “safely” in quotation marks because there are no guarantees with the 4% approach. There is also the real possibility of depleting your portfolio by withdrawing 4% out of your account per year. Why?

Because you might have only budgeted your money to last until a certain age, but if you end up living longer than that, you might not have enough remaining to cover your needs. Then what?

If pensions were still widely used like they once were, the concern about longevity wouldn’t be of much concern because there would be the PENSION to support people for however long they lived, whether it was until age 75 or 105. But, companies rarely offer their employees full pensions these days AND people are living longer. It’s pretty bad timing for pensions to have become extinct!

It used to be that people weren’t living as long and pensions DID exist. Now people are living longer and pensions rarely exist. Things certainly have changed.

THERE IS SOMETHING YOU CAN DO ABOUT IT …

Retirees today should not expose all of their money to the risks of the market because, but they don’t have a pension and people are living longer, so now what?

A “personal pension”! That’s what!

You can build a “personal pension plan” that is tailored around YOUR retirement and is customized to fit YOUR retirement wants and needs. That actually is better than the old traditional pension, because it is a “personal, tailored” pension designed around your specific situation.

Fill out this short survey or, for immediate attention, call us at 1-877-805-0151 to learn more about building YOUR own personal pension!

As an example, when you purchase a Fixed Index Annuity, you will get pension-like features. You can spend your account valuedown to zero and STILL never run out of income* because the contractual guarantees* of the product promise to pay you a fixed amount of income every month for as long as you live.

One of the best things about these products is that you can buy one (or more) that addresses your biggest concern(s). For example, if you have a history of medical problems, you may need to take into consideration the higher cost of health care. There are specific annuity products that cater to people who may need long-term healthcare. That is just one example.

Depending on your needs and wants, there may be specific annuity products that fit your situation perfectly, or there may be a combination of different annuity products that help provide them. You first need to contact us at Statewide Retirement Planning Co. (954) 781-2220 so we can help you plan for your unique situation and begin figuring out how to best achieve your retirement vision!

Now, I want to quickly rewind and reiterate that I am NOT opposed to investing some money into the market AFTER you have put enough money into a secure financial vehicle that will provide you at least enough income throughout your retirement to cover your basic living expenses. My main concern is making sure that you can at least cover your basic living expenses.

Once you have that baseline of income, you might have the ability to invest in other, risky investments should you decide to do so. Obviously nobody wants to lose money. But if you did lose money in the market, at least you wouldn’t have to worry about a lifestyle change because you would still be able to count on your guaranteed* income from your “personal pension.”

This will give you a solid foundation of security (guaranteed* income) that will allow the rest of your portfolio to comfortably take on more risk, allowing YOU to be less concerned about what happens in the market and let you sleep at night. If we experience a dramatic market crash again, the only money that is exposed to that would be “extra money” that you’re NOT counting on to meet living expenses.

Who knows? The market can go either way, UP or DOWN. It does both very well.

If you lost money in the market, you will still receive your lifetime income that you can’t outlive no matter what. If you made money in the market, you will have that guaranteed* lifetime income from your annuity on top of any extra gains you receive from the market!

To learn more about what might be the most suitable use of assets for you in your retirement, contact us immediately. We will help you find that answer and discover what may be the best path to follow to help ensure that you live a happier, more confident lifestyle in retirement.

You will also receive a FREE “Guide to Social Security”.

Get in touch with us by filling out this short survey, or calling (954) 781-2220 if you would like immediate attention!

*Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer.

**8 hour Workshop: New Conservative Investing Techniques In A Bear Market. Cl'ck here for details. **

Cli'ck Here to Get Your FREE gift that will help you plan for long-term care expenses. and your income for life illustration.

Go To SMARTMONEY Newsletter Archives

Website:  www.StatewideRetirementPlanning.com

Review our Highly Acclaimed Videos:
Review 13-minute video “Retirement Made Easy”