Living your retirement and leaving something financially to your loved ones don’t have to be mutually exclusive goals.
Here are five legacy hurdles you may encounter and ideas to get past them.
Hurdle #1
An unexpected death
While some retirement challenges can be planned for well in advance, your unexpected passing may place a financial burden on those you leave behind. Talk to your financial professional about how certain annuities may offer a death benefit to help protect your legacy from an unexpected death.
Hurdle #2
Designating a beneficiary
Leaving an individual retirement account (IRA) to a beneficiary can be an effective way to transfer wealth. But there are a lot of decisions to make. Will you leave it to your spouse? Your children or grandchildren? Or will you create a trust to name as a beneficiary? The decision can have tax implications and financial impacts that last for decades. Consider consulting with your financial professional, tax and legal advisor to choose a beneficiary that makes the most sense for your retirement and legacy goals.
Hurdle #3
Taxes
Bequests to loved ones can quickly turn from acts of generosity into complicated burdens due to many things, including taxes. Yet certain taxes may potentially be reduced through a smart legacy strategy. Talk to your financial professional to see if an annuity may make sense for your tax strategy.
Hurdle #4
Long-term care expenses
By 2035, the number of people 85 years and older in the U.S. is expected to reach 11.8 million. By 2060 it will reach 19 million.1 With longer lifespans, however, comes the possibility of increased long-term care (LTC) expenses that can erode what you intend to leave behind. Ask your financial professional how ForeCare fixed annuity with Long-Term Care Benefits may help provide a way to pay for some of the qualified long-term care expenses.
Hurdle #5
Required minimum distributions
When you turn 73, the IRS generally requires you to start taking Required Minimum Distributions (RMDs) from your IRA. And with people living longer, those RMDs may disrupt your legacy plans. But some annuities feature death benefit options that can help keep your legacy plans on track, despite RMDs. Check with your financial professional for details.2
Products for your legacy strategy
Fixed index annuity
ForeAccumulation II
Delivers growth potential with no market losses. Plus, for a fee, an optional, Enhanced Death Benefit, that provides guaranteed growth of the death benefit.3
Registered index-linked annuity
ForeInvestors Choice
Features two Guaranteed Lifetime Withdrawal Benefits. Both build on the Withdrawal Base on which guaranteed income is determined and provide income that you can’t outlive.
Fixed annuity
ForeCare
Offers fixed, guaranteed growth with no down market risk. Plus, you may double or triple your money for qualified LTC expenses.4
Ready to review your legacy strategy?
Talk to your financial professional today to see if your legacy strategy is aligned with your expectations.