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Cashing Out in Retirement

Now this article from WSJ gives a good example of some of the typical advice that comes from the financial press. As you can see in the comments section there are many people who are opposed to the advice given in the article. In my opinion everyone is right to a degree but no one is completely accurate. That only goes for the comments I did read.  The article can be found here.
 
The article covers three major topics, which are the 4% withdrawal rule, benefits of flexibility and the importance of considering current and future taxation. All of the decisions you make in retirement will hinge on these issues as well as others.
 
My biggest issue with this article is that it makes no mention of guarantees. Maybe that’s my bias because I only offer advice that’s iron-clad. Any of the information given in the article or the attached comments can be valuable in part but the real plan to cash out in retirement requires a well rounded approach.
 
A solid base of guaranteed income can give much more power to all the different techniques and strategies noted as ways to tackle the issues you’ll face with inflation, tax law changes and market volatility among others.
 
You see, the subject of proper asset distribution in retirement hasn’t been mastered yet. As a result you see people attempting to use accumulation strategies as a way to meet distribution goals. That’s a reckless approach at best. Please don’t misunderstand my intentions here. I am a firm believer in the ability to continue asset growth through retirement but some concessions need to made first in order to cover the essentials. You’ll find that the right approach will give you many more options down the road.
 
Would you rather have plenty of income or enough money? Planning for one of those targets will give you both. Maybe it’s time to talk about what’s possible.
 
Bryan J. Anderson
 

800.438.5121 [email protected]

Reasons to Buy an Annuity

A couple of weeks ago I referenced a study on reverse dollar cost averaging done by Henry “Bud” Hebeler that talked about the negative effects of market volatility while drawing retirement income from your portfolio. 
 
Well just last week Mr. Hebeler was mentioned in this WSJ article that covers some reasons to use annuities in retirement.  Find the article here.
 
Really it’s all about the benefits, right? I don’t mean to belabor the point but we’re talking about guaranteed lifetime income and all the ways it can enhance your portfolio.
 
Bud Hebeler is a retired Boeing executive who is in the middle of a new career as a retirement expert. This story shows that he puts his money where his mouth is. He personally uses laddered immediate annuities to cover income needs and mentions that the secure source of income allows him to invest remaining assets more aggressively.
 
And that’s the central point of retirement planning I have been and will continue to stress to members of this site. Securing a source of guaranteed lifetime income allows you to optimize your retirement portfolio. Everyone should be aware of all the challenges retirees will likely face in retirement so getting the most of your assets is essential to responsible planning.
 
When I am able to find quality articles that explain the subject well I like to keep this brief and to the point. The reasons to buy annuities are pretty cut and dry… asset preservation, conservative growth and guaranteed lifetime income. Honestly, who isn’t interested in that?
 
At Annuity Straight Talk, the focus is on finding solutions rather than pushing a favorite product. Call, email or make an appointment to talk about available options for optimizing your retirement portfolio.
 
Bryan J. Anderson

800.438.5121 [email protected]

Variable Annuities- Do they Make Sense?

I read this interesting article in the Journal about annuities.  Check it out here.

I think it’s hard to find a variable annuity that makes sense, but they are very popular- as always, do your homework and call me with any questions!