BIRMINGHAM’S HOME FOR ANNUITIES

Assurance Financial Solutions (205) 578-2097

You make good decisions with your money and save where you can. You work hard to save for retirement and now it’s time to protect what you’ve built. When it comes time to start thinking about retirement, an annuity may be a good fit for you.

If you’re like many people approaching retirement today, one of your greatest fears is running out of money. You need a plan that will give you peace of mind. If you find yourself thinking in some of these terms, an annuity might be right for you.

PROBLEMS FACING TODAY’S RETIREES

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OUTLIVING YOUR SAVINGS

The number one fear of seniors in retirement is running out of money. Americans are living longer and longer. Consider that you need to save enough money in the event that you live up to 30 years and beyond in retirement. According to the Society of Actuaries, one spouse of a 65-year couple has a 50% chance of living to age 90 and beyond. You need a plan that guarantees your income. Annuities recreate the pension plans of old that insure that you will have income for as long as you should live.

INCREASED TAXES IN THE FUTURE

What will be your taxes look like in retirement? No one can predict what taxes will be in the future yet if you’re like me, you’re betting that they’ll be higher with the debt that our country is rapidly accumulating. One thing is for certain though, if you find yourself caught by rising taxes while in retirement, you’ll regret not having planned for higher taxes.

MARKET RISK

If you’re retirement window is getting closer, you can not take a large loss to your life’s savings. For those in retirement that are taking income — your income can be drastically affected by losing a large portion of your nest egg. How can you avoid the ups and downs in the stock market? A market downturn could impact your ability to generate income, yet, you will still need the opportunity for growth to increase your retirement savings. A plan will consider both market risk and the need to generate growth.

INFLATION

Inflation is the silent killer of your savings. Over the course of time, even a modest inflation rate of 2% can reduce your buying power by over 30% in as little as 15 years. As you spend down your savings in retirement, you’ll unknowingly have to spend more to keep pace with rising costs. A good plan must offset the effects of inflation on your savings.

LOW INTEREST RATES

Because of inflation, you have to have growth to offset the loss of buying power. But good growth is hard to come by as interest rates have been low for years. For years, savers could go to their local bank and lock in a good rate of return on their money at the local bank. But due to current Fed policy, seniors continue to wait, year after year, for interest rates to normalize while their savings continue to erode. Less than 1% is the average rate of return that a retiree can expect to receive from a certificate of deposit. As of this writing, I can’t get a CD in the State of AL that pays more than .50%. A good plan must incorporate growth that is not interest rate dependent.