Lifetime INcome

Most of us work all of our lives trying to accumulate a nest egg to take care of our families and ourselves during our “Golden Years.”  It’s a tough job!  We encounter lots of distractions along the way:  money we need to by our first homes, start businesses, put braces on our kids’ teeth, pay for college tuition – the list is endless and, for the most part, necessary.

Most Americans take pride in creating a prosperous lifestyle for our families.  We chase the American Dream attempting to create a more prosperous lifestyle for our children than we had when we were growing up.  Then, we retire.

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Retirement should be a time to settle back and enjoy a new stage of life, but for many of us, leaving the daily grind of work will be one of the most difficult transitions we will ever make.  Not going to work every day can be frightening, but realizing that you are going to live the rest of your life off your savings and Social Security can be even more intimidating!  This period can be the most challenging and difficult of all.

But it doesn’t have to be.

Here’s a way for you to reduce or eliminate any fear of about your financial future and develop your own lifetime income plan! Fear of your financial future rests in your not knowing the answers to several important questions.  

We ask ourselves, for example:

• “Where will the additional money come from over and above my Social Security benefit when I retire?”
• "Will that income last for the rest of my life?”
• "How can I be sure?”
• "How do I avoid making a mistake when planning for my retirement income?”\

These and several others are typical and valid questions most of us ask ourselves as we begin to think about our retirement years.  You are not alone!

Prior to retirement, we earned money – we were in the “accumulation phase” of life.  We worked, earned an income, and tried to keep as much of it as possible after paying our expenses.  At some point, we began to think about how we could keep more of that earned income – the “preservation phase” of life.  And finally, when we do retire, we have reached the “distribution phase” – that period of life when we must live on the money we have “accumulated” and “preserved.”

Our retirement income, therefore, becomes more important than ever!  We are no longer “accumulating” new money.  Instead, at retirement, we become recipients of income.  We become beneficiaries of retirement income.  One of our income streams is Social Security.  But from where does the rest of our income appear?  It will come, of course, from our nest egg – the money we have preserved during our working years.

Today, retirement is quite different than it was for previous generations, and it will continue to change and become more difficult for future generations.  Why?  First of all, people are living much longer, so their money must last longer.  They need a guarantee to keep them in the lifestyle to which they have become accustomed.  Plus, we have to factor in inflation.

Inflation at 4% (the past 20-year average is 3.6%) can have a devastating effect on our spending dollars.  It’s also important to understand that the health care inflation rate is more than double!  These three factors alone require far more individual planning for retirement than just one generation ago.  None of us can afford to make mistakes at retirement.  It’s different than making a mistake at age 26, 36, 46, or even 56.  At those ages, most of us can still recover – we can accumulate additional money.  But, recovering from a financial miscue at age 66 or older is far more difficult today.

Today’s pre- and present retirees need to have a plan and not just a product.  Retirees need solutions and assurances.  They need the services of a trusted advisor who can provide those guarantees.  Yes, you read that correctly – guarantees – regarding your retirement income!  Every person – including me – at or nearing retirement should participate in a complete review with a trusted advisor – a Safe Money Places™ advisor.

Each of us needs to determine a retirement income amount that we believe will be necessary to live in the style to which we’ve become accustomed.  In the process of doing this planning with a trusted advisor, we need to be sure to adjust for rates of inflation and the potential increase in our life expectancy.  Then, we should implement this new plan and monitor its progress over the years – stay on top of the changes in the financial world and our own lives and the years roll by.  All of this activity requires a dialogue – a conversation – with a financial professional.

Each Safe Money Places™ advisor is dedicated to helping each client (that’s YOU!) determine the best places to put your money so that it is safe and so that you can take advantage of all of the legal tax advantages that could save you thousands of dollars in your retirement income. Safe Money Places™ advisors constantly study, participate in training (continuing education), and stay on top of the latest products from all of the companies out there.  Accordingly, they can customize your retirement plan that will guarantee you an income for life!
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Call, toll-free: 877-844-0900 today, to locate a Safe Money Places™ advisor in your area.  There’s no cost or obligation whatsoever, and you’ll sleep better every night knowing you’ve got your own professional advisor on your side!

This article was written by Raymond J. Ohlson CLU, CRC, CEO & President of The Ohlson Group, Inc. and SMP International, LLC     
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Mr. Ohlson entered the insurance business while completing his Bachelor of Science Degree at Ball State University.  He quickly qualified for the Million Dollar Round Table (MDRT) of which he is a Life Member.  He also received his Chartered Life Underwriter (CLU) designation from the American College in Bryn Mawr, Pennsylvania.