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  3. RR - Test
Swimming with sharks
What's
Riskier?
  • Swimming with sharks?
  • Ignoring the effects of inflation in your retirement planning?
Answer
While we would never recommend swimming
with sharks, ignoring inflation can
bring its own kind of danger.

In short: Inflation eats value for lunch. An individual who spends around $320 a month on groceries today may need to spend $578 a month for those same groceries in 20 years, assuming a 3% rate of inflation. Current inflation rates may be higher.

Question
Swimming with sharks
 
Teen smartphone
What's
Riskier?
  • Confiscating a teen’s smart phone?
  • Or investing in bonds yielding low interest rates?
Answer
While taking a teen’s phone away may not
be too smart, low bond rates
present unique risks of their own.

When bond rates rise, values (how much you can sell the bond for) drop. A bond worth $100,000 could lose over $40,000 in value if rates rise 3%.

Question
Teen bedroom door
 
Swimming with sharks
What's
Riskier?
  • Ice skating in April?
  • Or trying to time the market?
Answer
You might ice skate in April if you’re
a good swimmer. But trying to time
the market could leave you under water.

A person who retires and begins withdrawing 5% annually at the start of a market decline could end up with significantly less money in 20 years than an individual who retires and begins the same withdrawals at the start of a rise in the market.

Question
Ice skater
 
Red Sox
What's
Riskier?
  • Wearing a Yankees cap to Fenway Park?
  • Or relying on low interest rates for fixed income in retirement?
Answer
If you wear that cap, you might want to wear
armor too. But you’re also vulnerable when
you rely on low interest rates for fixed
income during retirement.

When a retiree begins withdrawing money from savings to meet necessary expenses, it can lead to withdrawal risk — the risk that the retiree runs out of money. Withdrawal risk can rise when interest rates are low, especially in times when the rate of inflation is higher than the rate of interest.

Question
Yankees cap
 
2/2
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  • Achieve your goals
    • Achieve your goals
    • Accumulate more for retirement
    • Build a lifetime income "paycheck"
    • Leave a lasting legacy
    • Protect yourself and people you love
  • Explore our products
    • Annuities
    • Fixed Index Annuities
      • Fixed Index Annuities
      • ForeAccumulation II
      • ForeIncome II
      • Income 150+ SE
    • Registered Index-Linked Annuity
      • Registered Index-Linked Annuity
      • ForeStructured Growth
    • Income Annuities
      • Income Annuities
      • ForeCertain
    • Fixed Annuities
      • Fixed Annuities
      • ForeCare
      • SecureFore 3, 5 or 7
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      • Variable Annuities
      • ForeInvestors Choice
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