For many of us, the stock market represents the bulk of where most of our retirement portfolio is housed. With the advent of the 401k, most employers today switched from Defined Benefit Plans which consisted of pension plans to Defined Contribution mainly to offset the risks of having to secure and guarantee your retirement income by shifting the risks to you. These accounts are now home to trillions of Americans “nest eggs” but offers no guarantees when the market inevitably corrects itself.
See, the beauty of the pension plan (defined benefits) was that it had to “define” a set amount of guaranteed income when you and I retired. Whereas the defined contribution, just means you are allowed to “contribute” to your retirement but there is no guaranteed income amount to determine. It’s in a sense, a crapshoot aka rolling the proverbial dice at our “golden years.”
Retirement planning can be complicated in the best of times, and today’s uncertain markets only add to that complexity. At FIG Wealth, https://figwealthpartners.com/ we ask clients, “When you think of retirement planning, understand that there’s two parts to consider: First, what can you afford to lose and second, you must have a plan that takes away longevity risks.” With planning beyond the two biggest factors that can impact how and if you can retire: Wall Street & Washington.
Why do I say this? Well, Wall Street controls the markets (Stocks and Bonds) and those are often influenced and impacted by policies and emotions of Washington, DC. We’ve seen tremendous ebbs and flows of the market recently by the decisions being made by the White House and Congress. Keep in mind, with all the subsidies, inflation & gas prices at record highs; future higher taxes (someone must pay it back), and potential for World War, all of these will have an impact on the stock market and your future retirement income.
Therefore, it is imperative to have plans outside of those things that can cripple your retirement income. And we must have some level of guaranteed income in our retirement to offset these risks. Create your own pension (defined benefit plan) without the oversight or “overreach” of the government and its partner Wall Street.
Consider alternatives such as a Roth IRA (no future tax impact with tax free distribution); deferred indexed annuities and cash value life insurance which has principal protection amongst other features with growth options that get locked in with positive market upside. So, take advantage of when the market does well but not be burdened or have retirement lifestyle impacted negatively when the market “defines” your retirement living.
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Company Name: FIG Wealth Partners LLC
Contact Person: Steven Crawford, CEO, MBA & Certified Financial Fiduciary®
Email: Send Email
Phone: 19802168487
Country: United States
Website: https://figwealthpartners.com/