How do you Protect your Money?

How do you Protect your Money?

A major concern for many of my clients who are nearing retirement is how to protect their hard earned money from future down turns in the market.  Did you suffer a loss in 2008?

According to the Federal Reserve, between 2007 and 2010, median U.S. household net worth Dropped by 39%.

People nearing retirement should be smarter about managing the market risk in their retriement accounts if a drop in networth is concerning to them.

Clients who are relying on their 401K's and other retirement accounts may be glad to know there is a safe way to protect savings from "market corrections".  I dislike the term market correction, that's what my former financial adviser called it when I screamed bloody murder over my 401K losses.

What you can do to protect your 401K is request an in-service withdrawl (take your money out of your account and place it somewhere with no market risk).  You request a direct rollover of the money you want protected to an IRA with an insurance company.

Typically at 59 1/2 and older you can request a direct roll-over of your 401K funds from an employer sponsored program into an IRA.

There is no tax penalty for moving money from your qualified 401K to a qualified IRA.

I quote from a January 6, 2014 Money Market article by Steve Vernon called "How Long Will Your Retirment Saving Last?"  "One way to avoid running out of money before you die is to buy an annuity from an insurance company, which guarantee's you a monthly payment no matter how long you live and no matter what happens in the economy.

Unfortunately, many people don't buy annuities, but instead keep their savings invested in the stock market and make withdrawals to cover their living expenses.  Another mistake is not having a formal plan for withdrawing money......."

For many clients using and in-service withdrawal from a qualified plan to fund a fixed indexed annuity with a guaranteed lifetime retirement income benefit is a good way to protect at least your basic financial needs when you retire.

This provides a secure lifetime income with money in your mailbox every month.

Make sure to seek good financial advice to choose the appropriate fixed indexed annuity for your circumstances.

Please feel free to contact me with any questions.

Cory Payne

Beehive Insurance Retirement Planning Services

cpayne@beehiveinsurance.com

801-685-6860