You plan for everything in life — birthdays, anniversaries, weddings, vacations, homes, and much more. Why shouldn’t you also plan for your retirement? We know life can be complicated, investing doesn't have to be.

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Investing for retirement doesn't stop at a state-sponsored pension plan. (TRS) As retirement draws near, you’ll need enough money so as to not outlive your savings. Using available enhanced benefits together we can tailor a plan guaranteed to provide income throughout your retirement years.

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If you've considered these questions, I may have the answers!

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1.) Where will your retirement income come from?

2.) How long will that income last?

3.) How much can you afford to save from each paycheck?

4.) Who will be impacted by your current decisions?

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Annuities

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An annuity is a contract in which the policy owner pays a single premium or a series of premiums to an insurer. The insurer then promises to provide a series of periodic payments at the time when the owner makes such an election, provide a death benefit , or return the cash surrender value to the owner upon request. Some policy owners elect an annuitization option once they retire and need to supplement their income with additional monies. Many annuity policy owners use their annuity as a tax-deferred savings vehicle. Depending on what type of income you pursue and how much risk you are willing to take, there are many types of annuities:

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• Fixed annuities: Fixed annuity contracts have guaranteed rates. They are easy to understand but pay less.

• Variable annuities : Variable annuities put your money in a mutual fund of your choice. The interest rate varies depending on market performance.

• Fixed-indexed annuities: This is a fixed annuity contract but with an extra variable rate. The additional variable rate comes from investments in index funds.

• Immediate annuities: Immediate annuities are the exact opposite of life insurance. You pay a lump sum now in exchange for regular payments until death. The annuity is “immediate” because it usually starts the payment process within 12 months.

• Deferred annuities: Deferred annuities are opposite of immediate annuities. You pay the upfront amount and the financial institution starts making payments after a certain period of time.

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No Cost Living Benefits Plan

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A living benefits plan can help provide financial security and tax advantages for you while alive, as well as provide for others upon your death. With a Living Benefits plan, you can access the cash value or accelerate the death benefit for your own use while you are still living. It's hard to know how you'll handle having a critical, chronic or terminal illness, but one thing is sure: it's likely to be stressful, financially and emotionally.

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Many people worry that, if they become seriously ill, they'll be a burden to their family. They wonder who'll take care of them, if they can stay in their home or what it'll do to their retirement savings. Quite simply, living benefits are benefits that allow you to access a portion of your policy's death benefit while you are still living, if you are diagnosed with a qualifying illness.

The money received can be used any way you choose, from paying hospital bills, better medical treatments, dream vacation, college payment to making up for missed work due to illness, and more.

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Life Insurance

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A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death. Typically, life insurance is chosen based on the needs and goals of the owner.

 

There are many varieties of life insurance. Some of the more common types are discussed below.

 

• Term Life Insurance: Term life insurance is designed to provide financial protection for a specific period of time, such as 10, 15, 20 or 30 years. With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that period, policies may offer continued coverage, usually at a substantially higher premium payment rate. Term life insurance is generally the least expensive.

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• Index Universal Life Insurance: IUL, is a type of permanent life insurance policy that offers death benefit protection for your lifetime, as well as a cash value component that provides you with the opportunity for higher returns than regular universal life insurance yet without downside market risk. Unlike other insurance, where the company decides your monthly payment based on age and gender, you decide how much you want to pay monthly.

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• Whole Life Insurance: Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage. Because of the lifetime coverage period, whole life usually has higher premium payments than term life. Policy premium payments are typically fixed, and, unlike term, whole life has a cash value, which functions as a savings component and may accumulate tax-deferred over time.

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Individual Retirement Account (IRA)

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An individual retirement account allows you to save money for retirement in a tax-advantaged way. An IRA is an account that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis.

 

The 3 main types of IRAs each have different advantages:

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• Traditional IRA - You make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow tax-deferred until you withdraw them in retirement. Many retirees find themselves in a lower tax bracket than they were in pre-retirement, so the tax-deferral means the money may be taxed at a lower rate.

• Roth IRA - You make contributions with money you've already paid taxes on (after-tax), and your money may potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.

• Rollover IRA - You contribute money "rolled over" from a qualified retirement plan into this traditional IRA. Rollovers involve moving eligible assets from an employer-sponsored plan, such as a 401(k) or 403(b), into an IRA.

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Start Planning Today

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Let's Talk

956-448-7250

info@teacherretirementadvisorss.com

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