Pension CalculatorCongratulations- Now that you’ve made it this far, you are ready for the rubber to meet the road.  With all the ground we’ve covered regarding the benefits of pension-like income it’s time to put this information into practice.

In this final section, we’re going to take a look at nearly all the things each person needs to consider before allocating assets to such an important task.  It’s critical to think through these items before considering any products.

Note also that I say ‘nearly all the things’ because there are no doubt certain issues that will only occur for specific individuals.   That’s exactly why a solid plan can only be crafted with expert guidance.

Everything on this list is basic but coordination of each into a solid strategy is where an expert can add tremendous value.

1)      What is your current age and when do you plan to retire?

Are you looking for joint or single life coverage?

2)      Take account of the assets you have accumulated to this point.

Cash
IRA/401K
Brokerage
Real Estate
Business

3)      What is your base level of income needed in retirement?

Consider all expenses and add a little extra just to be sure

4)      How much guaranteed income do you expect from other sources?

Employer Pension
Social Security

5)      The difference between what you need and what you expect is the income gap that needs to be filled.

Make note of the fact that certain forms of passive income are not guaranteed and should be considered additional supplemental income.

Investment Property
Stock Dividends

The goal is to find the most efficient way of filling that gap possible.

If you’re ready to work with us right now, please call 800-438-5121 or use this brief STRATEGY SESSION page.

Other Considerations:

The only typical issue not stated on the list deals with an individual’s desire to leave a financial legacy or inheritance for future generations.  That is something that needs to be dealt with on a case by case basis and relates more to how additional assets are invested once a guaranteed income source has been secured.

As for the other points, depending on your specific answers the optimal plan can vary greatly.  The strategy you select will ultimately be determined by the timing of your planned retirement date as well as your current level of assets in relation to what you need.  As you work through the list, each item will move the levers one way or another.

In relation to timing, you either need the income immediately, or you need it at some point in the future.  There are also plenty of situations where people will want a certain level of income to start well into the retirement years.

Conveniently, there are annuities to satisfy all requirements with both immediate and deferred annuities available.  An exact answer is impossible without your individual specifications, but we offer you a starting point.

Here’s what you need to do…

Find a calculator that will show you how much investment is needed to produce your desired result so you have a target to work with.  Fortunately we have created one that you can find at the end of this post.

Remember, no single calculator available can account for all of these factors so qualified advice is a must at some point.  Find someone you trust- we’re here to help.

As you move from the general plan outline above to specifics, keep in mind the threats we’ve discussed.  Plan for them and answer the following questions…

1)     How do you plan to deal with inflation?

Many agents will present a product centric approach vs. our advice to maintain asset flexibility and potential future benefits with multiple products or financial vehicles.  This also allows you to spread risk across various financial institutions which is, coincidentally, a much safer approach.

2)    What about market risk?

Guaranteed income will insulate your basic income needs from volatility so you’ll only be subjected to the level of market risk you assume via separate accounts.

3)    How about longevity?

Guaranteed income for life will cover basic expenses as long as you live, while retaining flexibility and growth for future planning and prosperity.

Private Pension Calculator

As mentioned previously, we have designed a simple calculator that will allow you to find out how much money it takes now to provide the guaranteed income you need in the future.  This will give you a general calculation that will allow us to design a strategy around your needs.

From there the process requires fine tuning based on individual parameters.  Throughout this series you have seen our detailed approach to the considerations each individual faces while crafting a private pension that supplies sustainable, passive retirement income.  We appreciate the opportunity to share this approach with each of you and look forward to working with you on an individual basis.

The calculator is at the bottom of this page.

When you are ready to get into specifics of how to optimize your retirement portfolio, please simple Contact Us, or pick up the phone.

Best wishes for a prosperous retirement!

If You Prefer To Speak To Us Directly, Our Phone is 800.438.5121

Private Pension Calculator- Click The Image to Download our Private Pension Calculator in Microsoft Excel .xls format.

This calculator will give a good indication of the income you can expect to receive in a private pension annuity. We look forward to working with you to design a private pension annuity that suits your individual situation.

When you are ready to get into specifics of how to optimize your retirement portfolio, please simple Contact Us, or pick up the phone.

Best wishes for a prosperous retirement!

If You Prefer To Speak To Us Directly, Our Phone is 800.438.5121