Annuities for Women

Who lives longer, men or women?  The answer has long been known, women are in first place in the longevity test. Statistically, they live longer  by 6.5 years.

In a 2011 survey asking Baby Boomer-aged women about their retirement plans and their investible assets, single women had substantially less money saved for retirement than did single men. In addition to less money saved for retirement, a high percentage (86%) of women surveyed planned to retire earlier than men.

The other important fact discovered from the survey results was that women had a much greater fear of running out of money during their retirement years. While on 52% of men are concerned about retirement shortfalls, 70% of women list this as their number one concern.
According to the Women’s Institute for a Secure Retirement (WISER): http://www.wiserwomen.org/

Top Five Retirement Challenges For Women

1. Three out of five working women earn less than $30,000 per year.
2. Three out of four working women earn less than $40,000 per year.
3. Half of all women work in traditionally female, relatively low paid jobs without pensions.
4. Women retirees receive only half the average pension benefits that men receive.
5. Women’s earnings average $.77 for every $1 earned by men – a lifetime loss of over $300,000.

Realities as listed above put retirement in jeopardy and makes planning a difficult task. The Institute goes on to say that women are twice as likely as older men to become poor.

The important first step for women with their financial planning is to take control and be in charge of their financial future. Making sure your financial future has basic guarantees is the first step.  Annuities can help provide that important base. Here are a few benefits of using an annuity as the foundation of retirement planning.

• Funds in an annuity accumulate as deferred.
• Annuities can avoid probate when a named beneficiary is used. Many annuities now contain a death benefit provision which allows for a larger inheritance to be received by the named beneficiary.
• Many annuities now contain long term care riders which will assist in nursing home expenses. Generally the LTC rider is less expensive than a long term care insurance policy.
• The right type of annuity (fixed) allows for protection from loss (and risk) and the proceeds are fully guaranteed.
• Unlike an IRA or 401 (k), annuities have no limits in regards to annual contributions.

And finally, women statistically live longer than men and annuities have an income feature that will provide an income for as long as the annuitant lives, regardless of how long that may be.  So a woman can provide the foundational structure of long-term guaranteed income without any concern of outliving her money.

Safety, guaranteed income, annuities could be the key for women who want an insured retirement income.$

Maximize Your Retirement Options With an IRA Rollover

When an employee retires with an intact 401 (k), the funds can be moved to a self directed IRA without tax liability.  This is called a direct rollover. A rollover is accomplished without any tax liability and is often directly transferred from one custodial to another.  In addition to a direct rollover, the owner of the 401 (k) may have the funds sent directly to them and keep them in their possession for a period of 60 days. If the funds are not re-deposited to an IRA during the 60 days, they then become taxable and are no longer considered an IRA.

During the accumulation process at the time the employee is working, the goal is normally growth.  But as retirement time approaches, a more conservative allocation of assets may be desired.
At retirement the goal can be much different such as preservation of capital, the stronger need for safety and security becomes much more important and the shift normally changes to income. How will the income replace the  income earned while employed? How do you make sure your lifestyle will continue in retirement?

The use of an annuity in an IRA at retirement time can help provide the necessary income, safety and security desired at this stage of your life. Annuity contracts can contain income riders which can provide income at a higher than market rate for almost any time period, even lifetime. Annuities also contain a provision called “settlement options” which include a guaranteed table of factors in determining the minimum amount of income that will be paid.  These rates are contractually guaranteed in the annuity contract.

Many people feel very comfortable investing their retirement packages in insurance companies because of the guarantees these contract provide. The term “safe, secure, recurring” income means you can spend 100% of your monthly check because the next month it will arrive again.  Reccurring over and over and over.

It is important to fully understand your individual needs before making any final decisions.  While annuities offer safety and security, there are situations when an annuity may not be the best option.  The choice for an annuity should be made only after a complete and thorough fact finder is completed and then when a full understanding of your goals and needs are established.$