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Is the Downturn Threatening Your Retirement? 3 Tools to Protect Your Nest Egg

Worried about the direction the financial markets have taken over the past few months? You’re not alone. After nine consecutive years of growth, the markets ended 2018 on a down note. The S&P 500 finished the year down more than 6 percent, the first time it has ever finished a year negative after being positive through the first three quarters.1

In fact, some indexes have already entered bear market territory. The Nasdaq dropped more than 23 percent from its Aug. 29 high. The Wilshire 5000 and Russell 2000 also dropped more than 20 percent from their respective peaks in early September.1

If you’re approaching retirement, these losses could be stressful. When you’re younger and just starting your career, you have time to absorb losses and recover. That may not be the case if you’re only a few years from retirement. You’ll soon need to use your assets to generate income. A substantial decline may force you to delay retirement or make cuts to your planned lifestyle.

Fortunately, there are steps you can take to protect your nest egg and your retirement. Below are three tools that can help you reduce your exposure to downside risk. Talk to your financial professional to see how these may play a role in your financial strategy.

Fixed Indexed Annuity


When it comes to investing, risk and return usually go hand in hand. Those assets that offer the most potential return often come with the highest exposure to risk. Assets that have little risk also offer little potential growth. It’s difficult to find growth opportunities that don’t have downside market risk.

There are some tools available, though. One is a fixed indexed annuity. In a fixed indexed annuity, allows your money the potential to grow on a tax-deferred basis. The potential growth comes in the form of interest credited to the contract typically anually.

Your interest credited each year is based on the return of a specific external index, like the S&P 500. The better the index performs in a given period, the higher the potential for the interest credits, up to a certain limit. If the index performs poorly, you may receive less or zero interest, but your contract won’t decline in value.

Fixed indexed annuities have guarantees* on the value of the contract. That means you’ll never lose premium because of market declines. A fixed indexed annuity could be an effective way to plan for retirement income without exposing yourself to market risk.

Deferred Income Annuity


Are you concerned about your ability to generate retirement income in the future? Or are you worried that your retirement income isn’t guaranteed*? A deferred income annuity, also known as a longevity annuity, could be an effective option.

With a deferred income annuity, you contribute a lump-sum amount and pick a date in the future to begin receiving income. At the specified time, the annuity company will begin paying you an income stream that’s guaranteed* for life, no matter how long you live. Work with your financial professional to project your income and see if a deferred income annuity can help you fill any gaps.

Life Insurance


You’ve probably purchased life insurance at some point in your life with the goal of protecting your spouse, children or other loved ones. Life insurance is a highly effective protection tool, but it can also do more.

Some life insurance policies have a cash value account. Each time you make a premium payment, a portion goes into the cash value. Those funds grow on a tax-deferred basis over time. The growth usually comes in the form of dividends or interest, depending on the policy. You can also use the life insurance policy to generate tax-free income in retirement via loans or withdrawals.

If you have a life insurance policy, you may want to explore how you can use it to achieve low-risk, tax-deferred growth and possibly create supplemental income in the future. Or you may want to look at new policies and see how they can help you protect your assets.


Ready to protect your nest egg? Let’s talk about it. Contact us at Retirement Peace Project. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.




*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.



18412 – 2019/1/16

Can Baby Boomers Learn Financial Lessons From Millennials?

It’s graduation season. Perhaps you have family members such as children, grandchildren, nephews, nieces or others who are graduating from high school or college this year. Members of the current generation of graduates are known as millennials, a group loosely defined as those born between the mid-1980s and early 2000s.1

Millennials sometimes get a bad rap as being entitled and self-focused. However, their relationship with technology has given them a unique worldview. They grew up with cellphones, internet access and other technology that previous generations couldn’t even imagine. Millennials recognize how to use technology to their advantage, and they may see opportunities that older generations don’t recognize.

Technology isn’t the only factor that’s had an impact on the thinking of millennials. They’re influenced by major world events like 9/11 and the economic collapse of 2008. They also struggle with student loans, which may influence their view on money and debt.

As a baby boomer, you may feel it’s your responsibility to impart wisdom to millennials. However, there could also be important financial lessons you can learn from them, especially as you approach retirement. Below are three ways you can think like a millennial as you enter retirement:


Use the sharing economy to generate side income.


Sharing is a basic life skill that most people learn in kindergarten. However, technological advances have helped reshape the economy through the idea of sharing. The “sharing economy” is based on the concept that anyone can earn income by sharing the use of their assets, such as cars, homes, tools and even their time.

Millennials have embraced the sharing economy, as both users and sellers. You may be able to do the same in retirement to generate side income. For example, you could use your car to drive part time for a ride-hailing company. You could earn extra income by renting out a room in your home to travelers. There are even sharing services that allow you to make money by running errands for others or loaning out your tools. Do some research and be creative to find moneymaking opportunities.


Budget your spending so you can enjoy memorable experiences.


Many millennials say they would rather spend their money on experiences than on stuff. They value activities like travel, concerts, parties and other social events. To finance those experiences, they often take a minimalist approach to the accumulation of “stuff,” such as clothing, furniture and more.

That could be a wise approach to take in retirement. If you’re like many retirees, your plans may include travel, hobbies, dining out and spending time with family and friends. Those activities require money.

If experiences are important to you, consider funding them by cutting spending in other areas of your budget. For example, cut back on shopping for new clothes. Consider downsizing to a smaller home, which would reduce your costs for things like mortgage payments, utilities, maintenance and more. That could give you more money for the activities that are most important to you.

Use technology to your advantage.


There’s no doubt that many millennials are much more tech-savvy than their baby boomer counterparts. You may even turn to your children or grandchildren for help with your tablet, cellphone or other devices.

However, now could be the time to embrace technology and learn how to use it to your advantage. For example, a number of apps can help you budget and track your spending in real time. That could keep you on the right path so you don’t deplete your assets. Also, your financial professional could help you take advantage of planning tools that can forecast your retirement and monitor your investments. Look for technology that can help you keep your retirement on track.


Ready to implement these tips into your retirement? Let’s talk about it. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.




Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

16694 – 2017/5/23

Check These 3 Items Off Your Planning List Before You Retire



Trying to decide when to retire? It’s a question that every worker faces at some point. In some cases your decision is made for you, because of health issues or employer restructurings. In an ideal world, however, you would get to retire at the time that’s right for you. There’s no universal correct answer on when that time is. It should be based on your unique needs, goals and objectives.

It may be helpful to think about what you need to complete before you retire. For example, you may want to save a certain amount of assets. Or you may want to reach full retirement age (FRA) for Social Security. Maybe you have stock options or other employer benefits that need to vest before you leave the working world.

There are also planning items you can use to minimize risk and improve your odds for success. Below are three such items. If you’re thinking about retirement but haven’t completed these items, now may be the time to do so. A financial professional can help you complete your planning so you can enter retirement with confidence.

Develop your retirement budget.

Are you one of the 60 percent of Americans who don’t use a budget?1 If so, retirement is the perfect time to make a change. A budget is one of the most effective financial tools available because it helps you make informed purchasing decisions and stay on track to reach your goals.

A budget is especially important as you enter retirement. One of the biggest risks in the early years of retirement is that you spend too much and deplete your assets too quickly. That could lead to you not having enough money in the later years of retirement. A budget can minimize this risk.

You can’t predict every expense you’ll face in retirement, but you can make estimates based on your current spending and your desired lifestyle. Also, be sure to include inflation in your budget. Your cost of living is likely to increase over time.

Map out your retirement income.

Where will your income come from in retirement? If you’re like most retirees, you’ll receive Social Security benefits. You also may receive a pension or some other type of income. And you’ll likely need to take distributions from your 401(k) plan, IRA or other retirement accounts.

Take some time to project your income. The Social Security Administration can provide you with benefit estimates, and your company’s human resources department should be able to provide estimated pension payments. A financial professional can help you determine a reasonable distribution amount to take from your savings each year. You also may want to consider an annuity, which can generate guaranteed* lifetime income.

Minimize your risk exposure.

Life can be unpredictable, and it’s possible that your retirement may not go according to plan. For instance, you or your spouse may develop a condition such as Alzheimer’s that requires long-term care. The financial markets could suffer a downturn that limits your ability to draw income. Your health care costs could be greater than expected.

A financial professional can help you develop strategies to minimize your exposure to risk. For example, you may want to consider long-term care insurance. An annuity could be a helpful tool to guarantee* your income and minimize downside risk. These steps and more could help you avoid dangerous threats that could sink your retirement.

Ready to implement your retirement strategy? Let’s talk about it. Contact us at Retirement Peace Project. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.



*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.

17848 – 2018/7/30