For many retirees, age 65 is an important milestone. It’s the age at which you can file for Medicare coverage. It may be the age when you become eligible for company pension benefits. Once you turn 65, you may only have a year or two until you can file for Social Security. For many reasons, 65 is often considered to be traditional retirement age.
However, many workers now say their target retirement age is well beyond 65. In fact, according to a recent study from CareerBuilder, 30 percent of workers age 60 and older say they won’t retire before age 70. An additional 20 percent plan to never retire. That means half of all workers over age 59 say they will work at least another 10 years.1
Are you considering using an annuity to provide income during your retirement? That could be a good idea, depending on your needs and objectives. Annuities can be a helpful tool to create predictable, reliable income that lasts through your retirement years.
Annuities can generate income via two different methods: annuitization or withdrawals. With annuitization, you contribute a lump sum into the annuity policy. The insurance company then converts that lump sum into a lifetime guaranteed stream of income based on your age and other factors. You lose access to the lump sum, but you receive a stream of income that’s guaranteed for life.
ARNOLDS PARK, Iowa (June 14, 2017) – As an extension to his commitment to service and placing the needs, goals and desires of others first, Carstens Financial Group is proud to announce the return of the third-annual Carstens Financial Group Charity Pro-Am.
This year’s Pro-Am, benefitting the Wounded Warrior Project (WWP), will be held August 7 and August 8, at Emerald Hills Gold Club in Arnolds Park. The Pro-Am will feature professional golfers from The Dakota Tour, a 19-event professional golf tour played in the Midwest states of Minnesota, Iowa, Nebraska, Wyoming and North and South Dakota. Players will be paired with up to 80 amateurs during the Pro-Am.
Have you used qualified plans such as 401(k)s, IRAs, annuities or others to save for retirement? You’re not alone. These accounts are popular because they allow you to accumulate assets without paying taxes on the growth. In most cases, you avoid taxes until you take distributions. In the case of a Roth IRA, you may never pay taxes on your growth or distributions.
Of course, the trade-off of this tax-favored treatment is that you must wait until age 59½ before you can take distributions from a qualified plan. If you take distributions prior to age 59½, you may face a 10 percent early distribution penalty.
If you’re preparing for retirement, you may know better than anyone how many different financial tools and products are available to help you generate income and minimize risk. From a broad range of investment and insurance products to different account types, you have many tools at your disposal. It may be hard to make sense of your options.
You probably want to use the tools that are best aligned with your needs and objectives, and you likely want to implement strategies that have a long track record of success. One potential tool is an annuity.
Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.