The 7 Retirement Challenges
1. The Age Wave – Between 2010 and 2030, the 65 and older population is expected to spike by 75% to more than 69 million! If you are married and make it to age 65, there is a 47% chance that one of you will live to see your 95th birthday. (U.S. Census Bureau, 2) (Counsel of Life Insurance, 1988; 3) (United Nations Population Division, 2004)
2. The Pension Plunge—Only about 44 million Americans are covered by pension plans today. The number of pension plans has dropped dramatically, from 114,000 in 1985 to fewer than 28,000 in 2005. Most pension plans are seriously underfunded, and many are in default.
For example, in May 2005, United Airlines announced to its pilots and flight attendants that they would only receive 25% of the retirement income promised because their plan was underfunded. In other words, only a monthly pilot counting on $4,000 receives $1,000. That is an unexpected $3,000 per month cut in pay. Most likely, they will need to find other work to make ends meet in retirement.
3. Social “In-Security”—Instead of being a supplement for a minority of people it was initially designed for, Social Security has become the primary income source for most retired Americans. Did you know that 65% of retirees rely on Social Security for 50% or more of their income and 33% for 90% of their retirement income?
It was projected that Social Security would pay out more than it takes in as early as 2018. Sadly, we didn’t even make it that far. In 2010, Social Security began paying out more than it took in. Congress not only didn’t address this in the most recent tax bill passed in late December 2010, but they also reduced the amount that businesses and workers will contribute to the Social Security Fund as a percent of their pay for the next two years!
4. The Tax Axe – Many are amazed to discover that the most significant single expense of the average American household is taxes. When we buy a car, fill up with gas, buy a home, flip a light switch, or even die, we will most likely pay a tax. Taxes are a constant.
5. The Invisible Enemy—The worst enemy we can face in battle is the one that can’t be seen. Regarding our retirement savings, Americans generally show little concern about the erosion of their future purchasing power caused by inflation. For this reason, inflation is known as the “Invisible Enemy.” If we are too conservative, today’s dollars can become ashes tomorrow.
6. Healthcare Nightmare – One of our financial goals as Americans should be to accumulate enough assets to take care of ourselves, no matter what. On the other hand, I can’t imagine you want the government to confiscate your wealth to pay your long-term medical expenses. An adequately designed Indexed Annuity (actuarially sound according to the Center for Medicare and Medicaid Services) may allow you to retain your wealth and not force you to “spend down” your assets to qualify for Medicaid.
7. Investor Blunders – Because Americans tend to “buy high and sell low,” the average Stock Market investor yielded only 3.17% from December 31, 1989, until December 31, 2009, one of history’s most significant “bull” markets. (Dalbar 2010 QAIB, Quantitative Analysis of Investor Behavior)
The Solution: Indexed Annuities
What if you could combine a tax-deferred guaranteed savings plan with a stock market-linked index that offered true upside growth potential? Wouldn’t this create an ideal environment that would allow you to face the Seven Challenges head-on?
The Indexed Annuity is just such a vehicle. It is designed with a minimum guaranteed interest return and an upside return linked to an outside index.
Indexed Annuities are among the most innovative products to be introduced in years. Furthermore, with the combination of stock market index-linked interest and the accumulation of stock market index-linked interest and the guarantee of your principal against market losses, Indexed Annuities are exceptionally well suited for your “safe money.” Don’t let the structural complexities get you down. The annuity advisor who delivered this Special Report will simplify things and help you focus on your financial goals and objectives, assisting you in choosing the plan that best fits your needs.
Indexed Annuities are a savings program that you should seriously consider. Remember, there is NO ADDITIONAL COST FOR OUR SERVICE. The company you select pays us, so it costs you nothing to let us help you.
The Seven Retirement Challenges are real. They are our foe in achieving financial freedom. An adequately secured Indexed Annuity can help us win the battle by providing the guarantees you demand and the potential upside return you deserve.
Call Sandra at 800.844.3254 or email us at ldomire01@aol.com.
