Taking Stock of Changing Financial Landscape

A recent report says 30-year returns won’t be as high as they were in the 20th century.

According to the McKinsey Global Institute’s stock and bond market research, a 30-year-old today will have to work seven years longer, or nearly double how much money he or she needs to save for retirement, to compensate for these lower returns.

[CLICK HERE to read the article, “Why investors may need to lower their sights,” from McKinsey Global Institute, April 2016.]

 

While none of that sounds like good news, it’s important to know that there are positives. Just as the markets have changed, so has the financial industry. There are insurance products available to help provide reliable sources of income. With certain insurance products, like annuities, you can create a steady stream of fixed income, which is what most people need in retirement. Remember that guarantees and protections provided by insurance products including annuities are backed by the financial strength and claims-paying ability of the issuing insurer.

We are happy to review your current situation to see if adding insurance products to your retirement income strategy is appropriate for your objectives and situation. Feel free to schedule an appointment for more information.

[CLICK HERE to read the article, “Stress is One Reason People Retire,” from Center for Retirement Research at Boston College, April 28, 2016.] [CLICK HERE to read the article, “U.S. Economy Expands to 0.5% Pace, Weakest in Two Years,” from Bloomberg, April 28, 2016.]

 

Rather than create a retirement income strategy, many people just plan to work longer. Unfortunately, we don’t always have that choice, depending on our health (and that of our family members), the job market and plenty of other factors.

In fact, if you work in a demanding, high-stress job, you’re less likely to be able to work past age 65. Studies show that people who can work longer tend to be in low-stress careers with stable job duties and the ability to transition to part-time work. This includes such occupations as writers, musicians, clergy and college professors.

The main thing to remember is that none of us will ever be able to control the economy, interest rates, the housing market or even our own ability to work as long as we may want. Taking the time to simply learn about how creating a source of guaranteed retirement income through the use of insurance products like annuities can help you feel confident about your financial future. We’re here if you’d like to discuss this further.

[CLICK HERE to read the article, “Housing market, intergenerational transmission of poverty, and more,” from Brookings Institution, April 28, 2016.]

 

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

The information contained in this material has been obtained from third-party sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 

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