The IRS is coming – eventually – for the money in your 401(K) or Traditional IRA.
As a result, people who think they have $500,000 or $1 million stashed away for retirement will learn they have less than they realized once they start withdrawing the money and have to pay taxes on those withdrawals.
The key to answer this question is to realize you are speaking about 'retirees' receiving this gift, or unexpected windfall or inheritance. We are not talking about someone in their 20’s, 30’s, or 40’s who have a different time horizon.
Annuities have been around for centuries – since Roman times. In Ancient Rome, people would make a single payment in return for annual lifetime payments. Even back then, retirement planning was a concern.
Life in retirement, which once conjured images of golf and sunsets at the beach, took on a drearier edge in recent years as more people realize they are unprepared financially to stop working. The Washington Post has called it “the new reality of old age” and quoted one 74-year-old man saying he will need to work until he dies. For those who have retired, a Fidelity study found that 55 percent are at risk of running out of money before their lives end. Think of this statistic—more than ½ of those surveyed aren’t prepared. Are you?
Preparing financially for retirement can be complicated for anyone, but for small business owners the process often poses even more challenges.
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Average of nearly $1.5 BILLION added to the national debt every single day… $62 million per hour… $1 million per minute… and more than $17,000 per SECOND
Talk to your financial professional and your tax advisor about how Social Security benefits can fit into a complete retirement income strategy. Financial professionals are able to provide you with information but not guidance or advice related to Social Security benefits. We are not affiliated with the U.S. government or any governmental agency.
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*Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods that vary by insurance company. Annuities are not FDIC insured.
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