Women & Money – Guaranteed Retirement Income Starts with a Plan

Women & Money - Guaranteed Retirement Income Starts with a Plan

I heard on the news yesterday that two-thirds of Americans would find it difficult to come up with the money to cover an unexpected $1,000 expense. This truly makes me sad. We’ve all been there at one point or another. Lack of finances has got to be one of the most stressful challenges to live […]

How To Not Run Out of Money in Retirement

Chris Arnold for WBFO - NPR News
April 27, 2016

How to not run out of money in retirement

Contrary to what you may have heard about annuities, they’re not all bad.

In fact, David Swenson, Chief Investment Officer at Yale University, and the expert interviewed for this article, believes it would be a wise move to include an advanced life deferred annuity in your retirement portfolio.

I happen to agree.

Without knowing exactly which annuity he is referring to – there are a myriad of annuities being offered in the marketplace – I’m going to assume he’s talking about an annuity with a guaranteed lifetime income stream.

Basically, a guaranteed lifetime income annuity is a contract between you and the provider (usually a life insurance company and preferably an A+ rated life insurance company), that guarantees you a certain amount of income (received monthly, quarterly or annually) in exchange for a certain amount of money that you give to the company, in either a lump sum (single premium) or over a certain period of time (flexible premium).

Even after your account balance goes to zero (after the money you gave to the company runs out), the company is contractually obligated to continue payments for as long as you’re alive. You’re essentially creating your own pension, turning a finite amount of money into a lifetime income stream.

Annuities are a smart option for women, because statistically we will outlive our male counterparts, we’re living longer and we typically retire with less financial assets than men. Women need the insurance protection against outliving financial assets that annuities offer.

There are a plethora of benefits that can be added to the basic annuity contract, such as:

✓ Joint life payout, which continues payment to a second annuitant (usually a spouse) when the first annuitant dies

✓Long term care benefit rider

✓Inflation protection rider

One thing to know is that the more benefits you add to the contract, the more you reduce your overall payout. It’s all a matter of priorities, and what you’re trying to accomplish in your portfolio.

One of the biggest complaints about annuities is their complexity, which causes a lot of confusion in the marketplace, not just for consumers, but for some advisors as well. That’s why it’s important to do your due diligence and work with an advisor who understands annuities.

You can start by checking out this article. Enjoy!

Money Coaching Success Story

How Nicole took action, got clients and made more money

Money Coaching Success Story

One of the most rewarding aspects of being a financial coach is watching my client go from feeling clueless and overwhelmed to taking control and stepping into her money power. One thing I know for sure is that a financially empowered woman is unstoppable in her ability to take excellent care of herself. For women, […]

Are You Living God’s Vision for Your Life?

Are you living God's vision for your life blog post by Patti Fagan, Christian Success Coach

One of my favorite goals to work on with coaching clients is finding their life purpose. I know firsthand how exhilarating life becomes once you (finally) discover why you were born. It gives life a whole new meaning. A quote by Mark Twain illustrates this point. The two most important days in your life are […]

Why Women Should Love Annuities

Insurance News Net Magazine
February 2016

Why women should love annuitiesOne of my favorite financial products for women is the tax-deferred annuity. It offers benefits I find extremely valuable, such as tax-deferred growth, upside potential, principal protection and some even provide guaranteed lifetime income (plus many other features, depending on the provider).

Yet, there is a huge community of investors, advisors included, who claim that they hate annuities. My response to that is this:

There are many types of annuities. Some are better than others. Some annuities are variable. I’m not a fan of those.

So, when I hear someone make a blanket statement such as, “I hate annuities,” that immediately lets me know that they are not knowledgeable on the subject.

In their defense, annuities are complex. There are plenty of advisors in the industry who don’t understand them. So if you are a consumer who finds them confusing, don’t feel bad.

But just because annuities are complex, doesn’t make them a bad choice. You just have to do your due diligence and work with a financial professional who understands the many wonderful benefits that annuities provide.

This article (by Linda Koco) points out many reasons advisors should be sharing this well kept secret with their female investor clients.

After all, who doesn’t want guaranteed lifetime income, right?

The Power of Your Words

Joel Osteen joins Oprah Winfrey to discuss The Power of I AM book

The Power of I AM book cover

Joel Osteen, pastor of Lakewood Church in Houston, is one of my favorite pastors to listen to. As a matter of fact, rather than listen to music in my car, I have Sirius radio tuned into Joel Osteen’s station, where I can get my daily dose of inspiration. Pastor Osteen says that what you say […]

Money Moves for Women Who Become Single in Retirement

NextAvenue.org
December 7, 2015

money advice for widow women

 

Here’s a great financial article for women by financial expert Kimberly Foss. In it she shares six steps for women who suddenly become single in retirement.

I’ve met with my share of women after they became widowed to discuss best moves for taking care of themselves financially. I wholeheartedly agree with Foss’ first step: If you’ve recently become widowed, wait at least one year before making major financial decisions.

It’s an excellent read with good solid advice, as well as stats and quotes, such as:

55 percent of widows reported challenges adjusting to a change in income level and 38 percent needed to cut discretionary spending.”

I say this all the time, and I’ll say it again, women need to increase their financial literacy, and not hide behind the excuse that your husband handles all the finances because you’re not good with money. Well, get good with money. That’s all I have to say on the matter.

Enjoy the article!

International Women’s Day: 25 Best Quotes on Women Money & Power

International Women’s Day: 25 Best Quotes on Women Money & Power

Today is International Women’s Day, a global day celebrating the social, economic, cultural and political achievements of women. History of International Women’s Day The first National Women’s Day was observed in 1909 across the United States. The first Women’s Day around the globe was observed in 1910. (Source) Since my passion is writing on the […]