Forbes: 10 Strategies to Recession-Proof Your Retirement
3 Key Points from Forbes:
1. Secure Steady Income with Annuities
2. Be Proactive, Not Reactive
3. Minimize Unnecessary Costs
Forbes' article provides an excellent opportunity for advisors to share content with clients from a distinguished 3rd party that drives home many principals advisors follow. You can read the article HERE
Securing Steady Income with Annuities - The rise in interest rates has created a limited-time opportunity to strengthen retirees' financial plans by incorporating lifetime income annuities. We've had several advisors who hadn't been using lifetime income annuities for the better half of a decade comment on the material benefit they see in RightCapital, eMoney, or MoneyGuide Pro after looking at clients' plans with vs without the annuity.
Be Proactive, Not Reactive - Taking some "cream off the top" while markets are high allows retirees to strengthen their emergency fund and put some extra cash on the sidelines so they're ready to deploy capital the next time the market drops by 20% or more. As the article mentions, "recessions create more millionaires than any other time" - recessions are a great buying opportunity for proactive retirees!
Minimize Unnecessary Costs - Using ETFs instead of Mutual Funds for non-qualified accounts is a simple tax-saving move. Minimizing debt ensures retirees aren't forced to use their money to pay debts when they should be enjoying retirement!
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Talcott's CEO Imran Siddiqui is a Harvard grad, former VP at Goldman Sachs, and was the brains behind the rise of Athene when he was at Apollo for over a decade. Now, he's making waves at Talcott after his appointment as their CEO. With his track record there's growing sentiment in the industry that Talcott will be the next big player in the annuity space!
Notable Client Solutions*
11% Cash Flow at age 65
A 60 year old would need to earn a net return of 6.94% in the market each year if they wanted to use $100k to generate $11k,000/year of income starting at age 65 and have that income last until they're 90.
F&G's Safe Income Advantage provides these guarantees, and many advisors like to use them to provide clients with baseline income in retirement.
5.80% Fixed Rate for 5 Years
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5.80% rate for 5 years
10% liquidity per year in years 2-5
Full cash value at death
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At Foundational Income, we strive to bring relevant topics and solutions to your fingertips in a straightforward way. We don’t see the need to keep products nor carriers a mystery. If you’d like to discuss any of this in more detail, give us a call!