Mark D. Goldstein, CFP®
Certified Financial Planner
NEW MEXICO OFFICE
Pueblo Plaza Executive Suites
1100 S. Main St., Suite 10
Las Cruces, NM 88005
Intelligent Office Complex
7362 Remcon Circle
El Paso, TX 79912
3701 Algonquin Rd., Suite 150
Rolling Meadows, IL 60008
(877) 442-0698 Toll-Free
"Guaranteed SAFE-Money Solutions for a Successful Retirement!"
Although they might claim that they’re here to help boomers and seniors retire, are you sure that the government’s “retirement plan” is your best option?
As you probably realize, at age 70-and-a-half we're forced to take RMDs (Required Minimum Distributions) from our traditional IRAs, 401(k)s, and any other "qualified" money. And we must calculate and withdraw the correct amount or face harsh FIFTY PERCENT (50%!) penalties if we don’t!
For most Americans, the RMD plan is the one they're going to follow because it’s been laid out for them and, after all, it was designed by the government so it's gotta be the most optimal way to receive retirement income. Right?
In reality, not only is the government’s plan sub-optimal, but with life expectancies increasing, it can actually be downright hazardous to your financial health in later years.
In my opinion, the guaranteed lifetime income annuity is the hands down true SAFE-money solution for today’s markets, and one that most boomers and seniors have unfortunately still not considered.
It’s easy to roll your IRA or 401(k) into an annuity. There are NO TAXES due for transferring funds and no 10% IRS withdrawal penalty.
In addition, the advantages of the lifetime income annuity significantly outweigh those of the government’s RMD plan in three powerful ways…
1. Lifetime Income Annuities Avoid Volatile Markets
If the markets were guaranteed to grow every year, just as they were skyrocketing in the late ‘90s, there would be no argument. It would be better to let your portfolio ride in stocks while taking your RMDs. But, duh, these aren't the 1990's and with disappearing pensions and a dwindling Social Security trust fund, boomers and seniors need to protect themselves from market volatility.
With the lifetime income annuity, market risk is completely eliminated. Secondly, “order-of-returns” risk… the risk that you may take a hit in the early years of retirement that could devastate the rest of your retirement... is also taken off the table.
With the lifetime income annuity, you are guaranteed to get a steady (or INCREASING!) paycheck... no matter what the markets do!
2. Annuities Can Save Your “Golden Retirement”
Wouldn't you agree that you should enjoy the early years of retirement to the fullest while you're still in the best of health? And that you should be able to receive more money in order to do all the things you’ve been dreaming about, whether that’s traveling or joining a country club?
A lifetime income annuity will ensure that you receive those high payouts during the golden years of retirement, and also guarantee that you'll never run out of money... even if you live well beyond 100!
3. Annuities Protect You from "RMD Crash"
Right now, most Americans are not concerned about living to age 100 or longer. But here are the facts...
For a 65-year-old couple, there's a 50% chance that one spouse will live to age 92, and a 25% chance that one will live to 97. And, yes, we're seeing more and more people living past the ripe old age of 100 (in fact, centenarians are the fastest growing age segment in the United States). Doubt it? Go visit any nursing home.
In almost every scenario, the payout rate of an annuity exceeds the RMD withdrawals in every single year. And even if there were another great bull market that dramatically boosted the RMD calculations, it still would not remove the risk of outliving your money.
Retirees need to protect themselves from the RMD drop and take longevity risk off the table. Lifetime annuities can do this with their high payout rates and guaranteed paychecks for life.
Why the Lifetime Income Annuity?
As with any investment, there are always trade-offs. With the annuity, you may have less opportunity for growth in a bull market. However, considering 2000-2002, 2007-2008 and the recent volatility of the markets, isn’t that an incredible exchange for zero market risk, zero order-of-returns risk, and higher payouts that are guaranteed for life?
In the end, my friends, it really comes down to one question: Do you want to follow the government’s one-size-fits-all retirement plan… or do you want to customize a much better one?