Is your income secure?
A balanced retirement plan should include a reasonable amount of guaranteed income from Social Security, pensions, or financial products such as fixed annuities. Guaranteed income sources, such as the government or financial institutions, reduce the risk of fluctuating income levels. You should consider having at least 20% of your total lifetime income from these reliable sources.
Are your expenses covered?
Your basic expenses will need to be funded throughout your retirement. A thorough retirement plan should balance your guaranteed income against your expenses to make sure that you will be able to afford to pay for your necessities. Having at least 60% of your total lifetime basic expenses covered by your guaranteed income can help protect you against market risk.
Are you making appropriate withdrawals?
A key to making sure that your retirement assets last a long time is to make sure that you are conservative with the amount of assets you withdraw each year. A suggested plan is to withdraw no more than 3-5% of your assets in your first retirement year, then adjust the amount by inflation annually.
Are you protected?
A need for long term care could put a significant dent in your retirement assets. At $200 a day, a typical 3-year stay in a long-term care facility could cost $216,000.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.