Your retirement assets will likely need to provide income for 30 or more years to sustain you in retirement. In order to properly protect and grow those assets, you must first know the percentage of your assets that:
1. Can grow in a good investment market.
Diversification is important in regard to the amount of your total portfolio that is designated for growth as there is a “risk-reward element”. While it’s great to take advantage of a rising market, this portion will vary based on age and risk tolerance. Your growth assets likely should be balanced with options that may not have the same upside, but are less likely to be impacted by a market collapse.
2. Are secure and protected from losses in a bad investment market.
For most of our pre-and post-retirees, protection of principal is a strong desire and an important financial objective. With volatility being the primary guarantee from the market, it’s important that a portion of your money is in secure investments independent of the market. Protected assets may include cash accounts, bank CDs, fixed annuities, and fixed-indexed annuities. Consult your financial advisor to determine which investments are the best fit for you.
3. Are liquid, and whether or not they are adequate.
Whether in retirement or before, things don’t always go according to plan. It’s important to have liquidity in your financial plan for those unexpected expenses that catch you by surprise or even just for regularly occurring monthly expenses. Typical liquid assets are checking and savings accounts, stocks, and bonds outside of your retirement account, or an unused line of credit that can be paid off quickly after its use.
4. Will help protect you from inflation.
In your lifetime, you’ve seen the price of a candy bar go from pennies to dollars. With people living longer, retirement money needs to last longer and account for the inevitable cost of living increases to keep up with the standard of living you desire.
When working alongside your trusted financial professional, you will want to ask questions about your asset allocation and the risk tolerance your retirement portfolio has or allows for. For more information on building guaranteed income that can sustain you for 30 or more years in retirement, schedule your complimentary review today.
Securities and advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/ SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. RAA is not affiliated with Lone Beacon
Neither the named representative nor the named Broker/Dealer or Investment Advisor gives tax or legal advice.
Fixed index annuities are designed to meet long-term needs for retirement income. Early withdrawals may result in loss of principal and credited interest due to surrender charges. Distributions may be subject to ordinary income tax and, if taken prior to age 59 ½, an additional 10% federal tax. An income rider or benefit (sometimes called Guaranteed Lifetime Withdrawal Benefits, or GLWB) is an additional feature available with some annuities and generally optional and come with additional cost. Income benefits are designed to provide income options above and beyond the standard annuitization or free withdrawal features in annuities. All contract gains beyond the CAP rate are surrendered to the insurance company to pay for the expense of the product.
The views expressed are not necessarily the opinion of Royal Alliance Associates Inc, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Individual circumstances vary. Investing is subject to risks including loss of principal invested. No strategy can assure a profit against loss.