"Can I Have My Cake & Eat It Too?"

This stock market roller coaster seems even worse than 2008. It has my husband and I worried that we will need all of our savings to live and have nothing left for our kids and grandkids.

He is 67 and I am 65. We both have IRAs and he has a 401(k) at work. He plans to work until 70 so he can get the most from his social security.

We own our home and have no debts. I want us to be comfortable in retirement and still give our family a real inheritance.

He says I can’t have my cake and eat it too. But can I?

Maybe you can have your cake and eat it too. The question is what are you willing to give up to get there?

This year’s stock market performance has been unsettling to say the least. It has not, however, been worse than 2008 when the market dropped far more and the recovery took almost a year and a half. It must feel worse to you though. You are now 3 years from retirement instead of 15 years. With less time to recoup the urgency to protect what you’ve built becomes very real.

To provide you with confidence in retirement you will want some income (maybe all) that is guaranteed as long as either of you live – much like a joint life pension. To provide your family with a real inheritance you will want a pre-determined guaranteed amount going to your children. This describes a variable annuity with income and death benefit riders.

Variable annuities come in many formats. Most offer the option (rider) to provide you with guaranteed lifetime income. Most also offer the option (rider) to provide your heirs with a guaranteed death benefit. Both of these riders come at a cost (premium) that is deducted from the earnings of the investments within the variable annuity platform.

Your challenge is to carefully examine and compare multiple variable annuity companies and policies to identify which (if any) fit your needs. These are sophisticated investment tools. You must take your time to understand the pros (guarantees for example) and the cons (rider costs for example) before committing to any program.

Many of our clients have found working with our More than Money advisors gives them an edge in identifying and understanding appropriate annuity options. 

If you would like to review your retirement plans with a free second opinion meeting with one of our More than Money advisors simply call our office. Our team will assist you in scheduling a convenient time for you to visit our World Headquarters – in the ‘Holy Lands’ between Bethlehem and Nazareth.

Gene answers your neighbors financial questions on More than Money.

Send in your concerns: Gene@AskMtM.com