Tag Archives: annunities

How to develop a safe stream of money during retirement

Citizen Journalism, ,

By Dave Stanley
Integrity Financial Service, LLC

“If you’re worried about running out of money when you retire, then you and the 1920s baseball star may have more in common than you think.”- Lawrence Castillo

Too many people closing in on retirement or who are already retired spend a lot of time worrying. These retirees and pre-retirees fear what will happen with their savings instead of what they want to do when they stop working.

I find this a bit sad. After all, the entire concept of retirement is built around the idea that there should be a time in your life when you can relax and enjoy the fruits of all your hard work and diligent planning.

 

Unfortunately, many Americans spend their days glued to their television sets or computers, fretting over every negative government report and news story. Every time stocks dive, they know their dreams become harder to achieve, and they wonder if there are any safe harbors for their wealth. Many of these hard-working Americans, even some who already have been retired for a while, realize they may have too much of their cash exposed to risk.

As I write this, the world is undergoing a shift unlike any I’ve witnessed. Runaway inflation and the real potential of simultaneous deflation, market turmoil, wars, soaring energy prices, tax hikes, and other global events have nearly everyone in a stressed-out state of panic. Understandably, many folks are looking for a magic pill that will take away their pain when managing their wealth.

I’m here to tell you that, although there is no magic pill that will fix your financial issues, there are ways to achieve greater peace of mind and create a more predictable and successful retirement outcome. Money market accounts, certificates of deposit (CDs), and bonds are safer places to store cash but typically won’t give you the growth needed to beat back inflation.

In my mind, those vehicles, while they can have their uses, are sort of like the modern-day version of stuffing your money into a coffee can and burying it in the backyard or lining the inside of your walls with dollar bills. Your money is a little safer, but it’s doing nothing for you.  These days, you certainly need some growth, and you must shield as much of your money as possible from risk.

That being the case, you might want to look at annuities. You can find annuity contracts in the portfolios of everyone from U.S. Presidents to Fortune 500 CEOs to sports figures. One of the most well-known tales of how annuities came through in the clutch is the story of New York Yankee legend Babe Ruth. Ruth, nicknamed “The Sultan of Swat,” was the highest-paid player in baseball and arguably the most famous sports figure in the world in the 1920s.

 

However, when the global Great Depression hit, other players who’d heavily invested in the stock market lost everything. While many of those once-wealthy athletes stood in soup kitchen lines, Ruth lived a life of relative comfort with no worries about running out of money. His secret? Instead of putting all his cash at risk in the market, Babe Ruth had purchased an annuity a few years before the Depression.

 

At the Depression’s height in 1934, Ruth was getting a guaranteed stream of income equal to around $290,000 in today’s dollars! Ruth was so impressed with his annuity’s performance that he bought a lifetime annuity for his wife so she’d have secure income after he passed away.

Summing it up: Even in challenging times, it’s still possible to enter retirement on a high note, with less stress and a greater chance of achieving your financial goals. If you are looking to protect your principal investment, create income that lasts until you die, and possibly provide a legacy for loved ones, you should consider an annuity.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management

Five reasons women should consider annuities for retirement

Citizen Journalism, Finances, How-To's, Local Business, Senior Living, , ,

By Dave Stanley
Integrity Financial Services

If you’re a woman in or near retirement, let me ask you this: “How do you plan to take what you’ve so diligently saved and turn it into a lifetime stream of dependable, predictable, tax-advantaged income?”

Five reasons women should consider using annuities to create more prosperous, less stressful retirements. (pxhere.com)

If you’re like many of us, you probably don’t have a ready answer to this question. That’s because you’ve been busy doing “all the right things.” You’ve been working, saving, maximizing your 401 K, paying off debts, being a caregiver, running a household, etc. It’s likely you haven’t really had time to think about what to do when the time comes to stop working and live on what you’ve accumulated.

I want to suggest: Take some time to consider annuities carefully. After spending time studying this often overlooked, but powerful financial vehicle, I’ve come to believe that nearly every woman planning on retiring could benefit from the features found in annuity products.


Here are a few reasons you should consider an annuity when it comes time to empty your “accumulation” bucket.

  1. An annuity creates guaranteed income for life. When you deposit a lump sum into an annuity, you enter into a contract with an insurance company in which the company guarantees you income for the rest of your life. This will eliminate a chief concern of many women entering the retirement phase of their lives, namely, running out of money too soon.

  2. Flexibility and customization. Annuities have come a long way in the past few years, offering a full spectrum of long-term care and inflation protection features. No longer are you constrained to a “one size fits all” annuity. These new kinds of annuities now provide for a new level of customization, safety, and functionality.

  3. Annuities provide predictability. Many people, especially those in their pre-retirement and retirement life stages, want to know exactly how much income they will be available when they retire. If predictability is one of your top priorities, then an annuity can provide that.

  4. Zero maintenance. When you agree to the terms of the annuity contract, you’ll be assured of a steady income for life even if you live for another 50 years after retiring. An annuity is one of the few available financial products you can actually “set and forget.” there is nothing to keep tweaking or moving around; no more crossing your fingers every time the market hiccups.

  5. Tax benefits by using an annuity for a portion of your nest egg allow that portion to grow tax-deferred, just like the money in traditional retirement accounts. That means if you don’t take out all the money for a while, you could see a significant tax reduction in retirement.

There are many other reasons that an annuity, while it may not be for everyone, is still worthy of your attention as you enter retirement. Partnering with an annuity specialist will allow you to examine these safe money alternatives more thoroughly to see if they will work in your particular situation.

If you’d like to know more about how women can use annuities to create safer, saner, more prosperous post-work lives, email or call me, and I will be happy to send you educational information to help you make the right decisions about your retirement blueprint.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management