​It’s said that change is the only constant in the financial markets. Many investors make the mistake of assuming that the current trend of the markets will last forever. That can be a problem regardless of whether markets are currently trending up or down. Both bull markets and bear markets inevitably end at some point.
During your working years, you may be able to tolerate the fluctuations and volatility of the market. After all, your retirement may be years or decades in the future, so a brief downturn may not be catastrophic.
Retirement, however, could be a different story. If you’re like many retirees, you’ll rely on some level of income in the form of distributions from your savings. You may take withdrawals from a 401(k) plan or an IRA. Or you might rely on interest or dividend income from investments. Either way, a downturn in the market could threaten your retirement assets and your ability to generate income.
Fortunately, there are steps you can take to minimize the impact of a market downturn. Below are three such planning strategies. If you haven’t thought about how a downturn could impact your retirement income, now may be the time to do so.

Dynamic Withdrawals
 
Many retirement plans include a dangerous assumption. They assume a constant withdrawal amount through retirement. The withdrawal amount may seem reasonable at the beginning of retirement, but it could become excessive if your savings balance declines over time. If the market endures a prolonged downturn and you take the same withdrawal amount, you could deplete your assets.
A better approach might be to take a flat percentage of your ending balance from the previous year. That way, your withdrawal changes along with market returns and your asset balances. Yes, that might mean your income goes down in some years, but it could also increase in others. However, this approach minimizes the risk that your withdrawals will prematurely deplete your savings.

Supplemental Income
 
The whole point of retirement is to stop working, so it may seem illogical to consider part-time work as part of your retirement strategy. However, even a modest amount of side income could be enough to offset any threat to your income from market losses.
You also may be able to generate income without working a traditional job. For example, if you have special expertise from your career, you may be able to use that knowledge to work part time as a consultant or teacher. You could rent out extra rooms in your home. There are a number of ways to generate supplemental income and still maintain a flexible retirement schedule.

Guaranteed* Income Annuities
 
Finally, you may want to consider using an annuity to convert a portion of your income into a guaranteed stream of income. One strategy is to use an immediate annuity, which offers a stream of income that’s guaranteed for life no matter how the markets perform.
 
Another option is a deferred annuity with a guaranteed minimum income benefit. Your money has the ability to grow through either interest payments or market returns. However, you can also take withdrawals. As long as you stay within a certain withdrawal limit, your income is guaranteed for life regardless of market performance.
 
Ready to develop your income strategy? Let’s talk about it. Contact us today at UBC Retirement Income Planning. Let’s connect soon and start the conversation.
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
 
17107 - 2017/10/30

 
For retirees, one of the most challenging questions is how to generate income. After you stop working, you’ll need to find a way to ensure your financial stability for the long term. Two predominant ways people use to have income in their post-work years is through either an IRA or Social Security benefits.
 
If you have a decent amount of savings in an IRA, you may decide to take distributions from that. Or you could file for Social Security benefits as soon as possible. Some retirees choose to use both sources, while others might have the ability to use one and save the other. But which scenario is best for you?


Why tap into your IRA first?
 
One reason to hold off on Social Security is that the longer you wait to file, the higher your benefit will be. Your full benefit amount is based on your filing when you reach your full retirement age (FRA), which for most people lands between their 66th and 67th birthdays. You can file as early as age 62, but doing so usually results in a permanent reduction in benefits.1
 
You can also wait past your FRA to file and net a permanent 8 percent credit on your benefit amount per year. You can’t delay filing past age 70, though. For instance, if your FRA is 66 and you file at age 70, you will receive a total 32 percent increase on your benefits.2
 
Utilizing your IRA before you file for benefits might help you delay Social Security and increase your benefits as a result.


Why file for Social Security first?
 
Filing for Social Security first may allow you to keep growing your IRA on a tax-deferred basis. This strategy can also give you a liquid asset class that can help you pay for emergencies. Life can be unpredictable. As you age, you may need long-term care, or you may need to pay off expensive medical bills.
 
Also, your primary goal may be to leave assets for your spouse, children or other loved ones after you pass away. If that’s the case, it may be a better idea to use your Social Security benefits and preserve your IRA. If you have a traditional IRA, you will have to start taking distributions at age 70½. If you have a Roth IRA, however, you can delay distributions as long as you want.


Consult with a professional.
 
Deciding whether to claim your benefits or hold off can be a tricky question to answer. One of the best ways to ensure you’re meeting your retirement goals is to consult with a financial professional. Working with an adviser, you can determine your goals and needs and find the best path to meet them.
 
Ready to learn more about retirement planning? We can help you evaluate your objectives and needs, and then develop a strategy. Let’s connect soon and start the conversation.
 

​
1https://www.ssa.gov/planners/retire/retirechart.html
2https://www.ssa.gov/planners/retire/delayret.html
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
 
The material is not intended to be legal or tax advice. The insurance agent can provide information, but not advice related to social security benefits. Clients should seek guidance from the Social Security Administration regarding their particular situation. The insurance agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. Social Security benefit payout rates can and will change at the sole discretion of the Social Security Administration. For more information, please consult a local Social Security Administration office, or visit www.ssa.gov
16161 - 2016/10/18

​If you’re like most retirees, Social Security is likely to play an important role in your retirement. The Social Security Administration estimates that 90 percent of all Americans over age 65 receive Social Security benefits. In fact, 50 percent of married retirees and 71 percent of singles say they count on Social Security for more than half of their retirement income.1
 
As you approach retirement, you’ll likely have to make a number of important financial decisions. One of the biggest may be when and how to file for Social Security benefits.  Without a solid strategy in place, you could face financial challenges. You may even be unable to fund the kind of retirement you’d like for yourself. Below are a few common Social Security mistakes. If you can avoid these, you’ll minimize your risk and save yourself some financial headaches.

Filing for early benefits while continuing to work.
 
You’re eligible to file for Social Security benefits as early as age 62. In fact, that’s when many retirees do file for benefits. However, if you file before your full retirement age (FRA), you could see your benefits reduced as much as 35 percent.2
 
However, that reduction could be far greater if you file for benefits while you’re still working. If you file before the year of your FRA, Social Security allows you to earn as much as $17,040 with no penalty. However, your benefit is reduced by $1 for every $2 you earn past that threshold.3 You can file at your FRA and continue working and see no reduction in benefits.

Expecting too much income from Social Security.
 
Expecting to use Social Security benefits to fund most of your lifestyle in retirement? You may want to rethink that strategy. While Social Security is a helpful resource, for most people it’s not enough to cover all expenses. The average monthly Social Security benefit is just over $1,300. In fact, Social Security benefits are capped at nearly $2,700.4
 
It’s likely that you’ll need some income above and beyond your Social Security benefit. This income could come from savings and investments, a pension or possibly even part-time work. If you don’t know where your additional income will come from, now may be the time to develop a strategy.

Forgetting to budget for Medicare premiums.
 
Medicare is another valuable resource for retirees. The Medicare program offers several different types of coverage, known as “parts.” Part A, which is standard and free for all retirees, covers hospitalizations and emergency treatments. Part B covers doctor visits and outpatient services, while Part C offers supplemental coverage and Part D covers prescription drugs.
 
It’s important to remember that Part A is the only coverage that does not have a premium. All the other parts do have premiums, which are usually paid out of your Social Security benefit. Be sure to get an estimate of those premiums before you file so you can project your net Social Security benefit and budget accordingly.
 
Ready to plan your Social Security strategy? Let’s talk about it. Contact us today at UBC Retirement Income Planning. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
2https://www.ssa.gov/planners/retire/agereduction.html
3https://www.ssa.gov/planners/retire/whileworking.html
4https://www.fool.com/retirement/2016/12/04/25-social-security-facts-figures-you-need-to-see.aspx
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
The material is not intended to be legal or tax advice. The insurance agent can provide information, but not advice related to social security benefits. Clients should seek guidance from the Social Security Administration regarding their particular situation. The insurance agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. Social Security benefit payout rates can and will change at the sole discretion of the Social Security Administration. For more information, please consult a local Social Security Administration office, or visit www.ssa.gov
17846 - 2018/7/30

​Thinking about purchasing long-term care insurance? That could be a wise decision. The U.S. Department of Health and Human Services estimates that today’s 65-year-olds have a 70 percent chance of needing long-term care at some point.1
 
Long-term care is ongoing assistance with basic, day-to-day living activities such as bathing, eating, mobility and more. It’s usually provided in an assisted living facility, but it can also be provided in the home, either by family members or by in-home health aides.
 
Regardless of where the care is provided, it’s usually a costly service. Long-term care often costs thousands of dollars per month, and care is often needed for years. It’s easy to see how it can be a long-term drain on your savings.
 
Long-term care insurance is a popular and effective funding strategy. You pay premiums to an insurer, and the policy then provides coverage for some or all of your long-term care costs. However, policies can vary widely in terms of cost and benefits. You may find the choices overwhelming.

​The year is halfway over. Have you met your savings goals so far this year? Are you behind on your savings for retirement? It’s easy to get behind on savings, especially when it comes to retirement, which may be years or decades in the future. After all, you probably have many other expenses and financial challenges that seem more urgent.
 
Fortunately, there’s still plenty of time left in the year to put away money for retirement. You may want to use qualified accounts to do so. These accounts, which include 401(k) plans and individual retirement accounts (IRAs), allow you to grow your funds on a tax-deferred basis. That means you don’t pay taxes on growth while the assets are inside the account.
 
Below are three commonly used qualified accounts and how they can help you save for retirement. You still have time left this year to ramp up your savings. Work with a financial professional to implement a savings strategy.

​A study from the U.S. Government Accountability Office (GAO) found that more than 25 million Americans left their 401(k) balance in a former employer’s plan during the 10-year period from 2004 through 2013.1 While there may be nothing wrong with leaving your 401(k) balance at a former employer, it could create planning challenges.
 
If your old employer is ever sold or goes out of business, you could have difficulty accessing your funds. Even if the company changes 401(k) providers, you may find it difficult to navigate the new system or get support.
 
The good news is you have options available. Below are three possible approaches. Consider your unique needs and goals before taking action. Also, you may want to consult with a financial professional to help you determine which option is best for you.

​According to a recent report from the Insured Retirement Institute, many baby boomers are behind on their retirement savings. The study found that 40 percent of baby boomers have no retirement savings. Nearly 70 percent have no pension or defined benefit plan. And almost 60 percent have less than $250,000 in retirement savings.1
 
Retirement is a difficult financial challenge for nearly everyone. You may have other expenses, like debt or education costs, that might seem more pressing. You might think that you have plenty of time to save for retirement. However, as you approach retirement, your window for saving is quickly closing.
 
If you’re behind on your retirement savings, now is the time to close the gap. The earlier you start, the more options you may have available. Below are three strategies that can help you catch up on your planning and erase your savings gap:

​For many people, retirement planning is all about saving money. Your retirement strategy may consist of contributing to a 401(k), an IRA or even a health savings account. When you’re young and have many years until retirement, asset accumulation may be your top priority.
 
As you near retirement, however, you may want to think about more than just dollars and cents. Asset accumulation is important, but you also may want to think about how those assets will be used in retirement. That means asking yourself questions about your desired lifestyle.

Below are four questions you may want to ask yourself as you develop your retirement strategy. These questions can help you think beyond the financial aspects of retirement planning. They can also inform your spending decisions in retirement so you can protect your assets and your financial stability.