Many studies show that most Americans are unprepared for retirement. According to the U.S. Department of Commerce, Bureau of Economic Analysis, the average 65-year-old can live for another 19 years as opposed to 13 years in 1940.
Many retirees are in real danger of outliving their resources. Finding a way to support your retirement strategy and harness the power of the markets is essential to help ensure you don’t outlive your assets.
Where can you put your money to take advantage of any market growth with tax deferral?
Securities can be an option, but the tax implications and capital gains may be a deterrent. You want to be in the market, but defer taxes until you are ready to use the assets for retirement. Variable annuities (VAs) could be the answer.
What is a variable annuity?These unheralded and often maligned tools can help create an income stream in retirement. They may allow you to harness the potential of bull markets and can help ride out any downturns by selecting a diversified portfolio of subaccounts. A death benefit is also available to provide additional benefits to your beneficiaries.
What can variable annuities do for you?
When you retire, your expenses won’t. You will need an income stream to help keep up with you and all the plans you and your family have prepared. A variable annuity can help provide this type of income stream to help ensure you and your loved ones can achieve all that you’ve planned for.
Variable annuities can offer a balance to the risk of investing and use account allocation within the annuity portfolio to help manage risk in the market. Consider using this reallocation feature, as appropriate, during the life of the contract to help align with your personal risk tolerance and keep up with changes in your financial goals.
As with any investment, a variable annuity does come with risk, including possible loss of principal. But with the need to save and prepare for your future retirement income stream, it certainly could benefit many people to have a variable annuity in their retirement portfolio.
Variable annuities are complicated as well as beneficial, so be sure to talk to a financial professional and carefully consider all your options before you purchase; but if you’re looking for an income stream within your retirement strategy, a VA might be just what you’re looking for.
This article was prepared by Thrivent Financial for use by local Tri-County area representative John Lauer. He has offices at 3821 Main Street in Morgantown and can also be reached at 610-286-5986.
Thrivent Financial is a financial services organization that helps Christians be wise with money and live generously. As a membership organization, it offers its nearly 2.4 million member-owners a broad range of products, services and guidance from financial representatives nationwide. For more than a century it has helped members make wise money choices that reflect their values while providing them opportunities to demonstrate their generosity where they live, work and worship. For more information, visit Thrivent.com/why. You can also find us on Facebook and Twitter.
