Jerry Golden on Retirement

When the government gives retirement advice, should you listen?

February 9, 2016 By Jerry Golden in Annuity Tags: Annuities, Guaranteed Income, retirement income

It is admittedly no simple task to plan one’s retirement with confidence. Even the federal government isn’t entirely clear on its recommendations to individuals who are working to prepare for a financially secure future.

White House Conference on Aging endorses income annuities — Government retirement advice

On one hand, the Internal Revenue Service last year created rules that allow us to invest part of an IRA or 401(k) in a Qualifying Longevity Annuity Contract, or QLAC. This financial product can guarantee a substantial lifetime income late in retirement in return for a lump-sum investment before or early in retirement. It is a special form of a deferred income annuity.

On the other hand, the White House Conference on Aging, which issued its final report last month, also endorsed income annuities, saying: More

What’s Your Number? Six Reasons Retirement Calculators May Fail Individual Investors

January 26, 2016 By Jerry Golden in Annuity 4 Comments Tags: Annuities, Guaranteed Income, retirement income, Social Security

A pop-up appeared on my computer screen offering to calculate my “retirement number.” The message said it could tell me the amount of savings I’ll need to retire comfortably. I’ve seen these enticements before, usually offered by a well-known and highly regarded financial institution. Even the robo-advisors and their calculators are carbon copies of the industry’s accepted approach.

Unfortunately, these calculators are not the best way to plan your financial future.

I don’t question the so-called Monte Carlo investment algorithms used to simulate market returns. What I do fault is the entire premise of extending that simulated market performance to individual investors’
personal retirement plans. An individual investor is not a pension or endowment fund with other sources to draw on, or with a virtually perpetual existence. More

Consider These Facts When Your Advisor Dismisses a QLAC

January 13, 2016 By Jerry Golden in Annuity 3 Comments Tags: Annuities, Guaranteed Income, retirement income

As the relatively new resource for retirement income — called the “Qualifying Longevity Annuity Contract,” or “QLAC” — becomes more well-known, financial advisors are trying to determine whether to recommend QLACs to their clients. The result so far has been confusion about what a QLAC is designed to do and how it can be used to enhance a retiree’s confidence in late-retirement finances.

The point of a QLAC is simple. It provides an additional source of guaranteed lifetime income to retirees’ portfolios that enhances their ability to invest for growth while providing peace of mind from gaining a source of income that will last as long as they live. More

Help For Life-Changing Events

January 6, 2016 By Jerry Golden in Annuity

All of us experience important life events. Sometimes you have time to anticipate and plan for them (weddings, reunions, retirement). Occasionally they happen without warning. Both types — planned and surprise — require you to make decisions. Your financial future is often the focus.

This could be true for anyone, but women especially still often are thrust into unfamiliar territory when dealing with life-changing events like the death of a spouse or the sale of the family home. In those circumstances, you might find yourself with a large amount of money. You have to make decisions about how to make it last. You will be approached by agents or advisors from banks, insurance and real estate companies or financial service providers. They will all offer solutions. You need to educate yourself and decide what is best for you. More

Single Women Confront Unique Questions as They Plan Retirement

December 1, 2015 By Jerry Golden in Annuity 2 Comments Tags: Fixed annuities, retirement, single women

In many ways, single women face the same problems as men when they consider how to retire with enough income, with one exception: They worry more.

Women in general are more likely than men to put money into their workplace retirement account and one third of women, according to a survey, said their savings plans are “on track.” But eight in 10 women have concerns about saving enough for retirement, with 54% saying they are “very concerned.”

Their worry is not misplaced. For one thing, it’s more difficult for a single person to save than it is for a couple. And when one member of a two-earner couple loses a job or gets sick it presents difficulties — but it’s not as scary as when you are the sole earner in a household. More