Is Rising Inflation Keeping
You Up At Night?

You likely have great plans for your senior years and have saved money to fund those plans. Many people travel or take this opportunity to do the things they’ve always wished they had time to do — pick up a hobby, take some classes, go back for a degree. Others look forward to relaxing and spending time with their family and friends.

Will You Have Enough?

What many people neglect to plan for is the possibility that they might outlive their savings, which can happen for many reasons. An extended retirement, caused either by early retirement or living longer than you ever expected to, can be a reason. So can inflation, which means that the buying power of your money will diminish over time.

For instance, even with an average inflation rate of 4%, retirees at age 60 with an income of $2,500 per month will have the purchasing power of just $1,388 per month by the time they’re 75. In effect, half of your income will be lost in just fifteen years. In addition, health and even long–term care expenses could quickly deplete money that you spent years acquiring — money that was set aside for an expected healthy retirement.

What You Can Do

Fortunately, there are some basic strategies you can employ to help ensure that your golden years will stay that way. First, it’s important to find ways to maximize returns on money in order to keep pace with inflation. It’s also important to be comfortable with the risk level you are willing to assume on your money. Lastly, it’s a good idea to make sure that you are financially protected in the event of illness, and that you have an estate plan in place.
Say you have a lump–sum of money to invest — perhaps from a rolled–over CD, pension or an inheritance — other than the high-risk stocks and mutual funds… Where can you put the money to keep up with or outpace inflation with the risk of losing money?

One option is a Fixed Indexed annuity. A Fixed Index Annuity offer the upside potential of the stock market without the downside risk.

A Fixed Indexed Annuity can provide tax–deferred growth of your money, a competitive rate of return and guaranteed income for the rest of your life. Since the income earned in a fixed annuity is subject to tax only as payments are made, you can enjoy a steady stream of income without worrying about a huge tax bill at one time. (A portion of the gain in a fixed annuity is taxed each time you receive a payment.)

A fixed indexed annuity can be a wonderful way to supplement retirement savings, allowing you grow your savings tax–deferred and keep pace or beat inflation.