The Risks Are Magnified When Moving From Assets To Income

Stock brokers, money managers and most investors are hard-wired to seek growth. Appreciation of stocks, companies, and economies is priority #1. Investors and managers always look for an edge or a ‘deal’ to grow and build assets.

But when it comes to producing INCOME from those assets, a whole new set of skills is needed. There are different tools, different risks, and different objectives. Asset accumulation is NOT income optimization, and your stock broker is definitely not up to the task.

Risks Before And After Retirement

risks in retirement magnified

You Face New Risks In Retirement

Your Retirement Income Expert

You need advisors with a different set of skills to maximize portfolio safety and minimize retirement risks. Moving from accumulation to decumulation- the orderly drawdown of assets – requires a retirement INCOME expert to put you in a position to outlive your expectations, and not outlive your money.

In retirement, what you have is not nearly as important as what you have to spend. Therefore, guaranteed income, and preferably income that cannot be outlived, is the cornerstone of responsible retirement planning.

Now, this guaranteed income does not need to be locked in today. Honestly, a guaranteed outcome is what we seek- that may mean implementing guarantees now that create lump sums and options years in the future. But using guarantees now to ensure that your future is secure immediately opens you to new options and mitigates risks.

Click to Download The 7 Critical Risks Special Report

7 Risks In Retirement Cover Curled
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What happens when you use guarantees? You Eliminate Risks….

  • Longevity Risk-
    • Guarantees remove the risk of outliving your assets, if you structure your income foundation properly;
  • Market Risk-
    • Guarantees remove the risk of market volatility affecting your day to day income and quality of life;
  • Sequence of Returns Risk-
    • Guarantees eliminate sequence of return risk to your principal;
  • Inflation Risk-
    • Guarantees increase your ability to counter inflation by allowing remaining assets to be invested for growth without pressure to create income;
  • Demographic Risk-
    • By removing assets from market-wide selling pressures, you avoid the risk of tidal waves of selling pressure depressing asset prices.
  • Systematic Withdrawal Risk-
    • Guarantees reduce portfolio risk by removing selling pressure to generate income at unsustainable levels;
  • Political Risks-
    • Guarantees help mitigate uncontrollable political risk by reducing your reliance on subsidies and handouts.

Retirement Red Zone

Risks are highest in the years leading up to and first years of retirement.  Portfolio losses in these times can cripple a retirement.

Retirement Red Zone

Retirement Red Zone- Leading Up To And Early Years Of Retirement

Our Bias Towards Guarantees

A retirement supported by guaranteed income is one of safety, security, and peace of mind. And annuities offer just the sort of guarantees needed.

So while we do not have a bias towards any one product, company, or annuity, we do have a bias to using a ‘flooring’ strategy. That is, we advocate that clients use guaranteed annuities to build a floor level of security to at the very least cover their guaranteed expenses.

Once a floor of guarantees is in place, remainder assets can be optimized, and effectively mitigate the wider range of risks that investors face when planning for retirement income. Guarantees remove pressure on assets, and increase flexibility and overall yield.

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What Annuity Straight Talk Can Do For You

We work with guarantees. A guaranteed floor that produces income now or income later is the key to retirement security.

We create optimal retirement income plans that produce this financial freedom and security, and our plans are guaranteed to work even when the markets tank.

But there is no silver bullet.

There is no one-size fits all financial product that is right for everyone. We can help to find what’s right for you, and balance your needs for safety, flexibility, profitability, and longevity to craft your optimal plan.