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Income Planning & Fixed Annuities
I have always said “Create the guaranteed Income first to pay your fixed cost & expenses then do the investments”. I’m sure you have heard of longevity risk, inflation risk and market risk when it comes to income planning for your retirement but have you heard of “Sequence of Return Risk”?  It’s probably one of the most important risks that almost no one talks about it.  It deals with what percentage of return you get on your investments and if it’s at the beginning of your retirement or later as you age. I have seen retirees completely run out of money by ignoring or not knowing how to avoid this risk or simply take too much in distributions. 

One of the biggest fears everyone has today is financial independence as we age. Most people know about accumulating wealth, 401K’s and investments, but need education on Income Planning. As our generation is getting older and baby boomers retiring and companies doing away with defined benefit pension plans, it makes the issue very important to preserve your income in the future.  Of course, you have choices such as dividend paying stocks, bonds, real estate, and fixed annuities. Usually after doing a financial plan you can decide if you need any of these investments depending on your expenses and the amount of income you may have from different sources. Our team can help you and propose an appropriate plan of action to provide stream of income for the rest of your life. 

** Fixed Annuities are products of the insurance industry and are designated for long – term retirement investing. Annuity guarantees are subject to the claims- paying ability of the insurance company. Surrender charges may apply if money is withdrawn before the end of the contract. All withdrawals of tax- deferred earnings are subject to current income tax, and, if made prior to age 59 1/2 , may also be subject to a 10% federal income tax penalty. Annuities generally contain fees and charges which include, but are not limited to, sales and surrender charges. Additionally, if purchases within a qualified plan, an annuity will provide no further tax deferral features. The contract, when redeemed, may be worth more or less than the total amount invested. 

The asset classes listed involve contrasting risk factors. Bond investments fluctuate in value in response to changes in interest rates, with lower-rated bonds possibly being speculative and involving higher risk of default. Investments in real estate have various risks including possible lack of liquidity and devaluation based on adverse economic and regulatory changes. The declaration and payment of dividends is subject to the discretion of an organization’s Board of Directors and depends on various factors, including the organization’s net income, financial condition, cash requirements, future prospects and other factors deemed relevant by the organization.
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Insurance and Tax services offered through Hoss Retirement & Insurance Services, Inc., which is not affiliated with Woodbury Financial Services, Inc.

Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc., Member FINRA, SIPC and Registered Investment Adviser. Insurance services offered through Hoss Retirement & Insurance Services, Inc. which is not affiliated with Woodbury Financial Services, Inc. Woodbury Financial Services Inc. does not offer tax or legal advice.



This communication is strictly intended for individuals residing in the state(s) of AZ, CA, FL, ID, NV, PA and TX. No offers may be made or accepted from any resident outside the specific states referenced.
 


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