What kind of retirement income strategy do you want?
In your retirement, your expenses will generally fall into one of three categories: Expenses for your “essential” needs, like groceries. Expenses for “fun” things you want, like a new home theater. And expenses for your “legacy” wishes, like leaving money behind to your loved ones after you die.
This quiz can help you determine the income strategy you’d prefer to help fund these expenses. For example, would you like a strategy that relies on the stock market only? Or would you prefer an approach that’s a blend of stock market investments and additional income that’s protected for life, such as Social Security, a pension, or an annuity?
How do you think about retirement?
This assessment is designed to see if you prefer a probability-based or a safety-first retirement income style. What’s the difference? Here’s a closer look at the two styles:
Probability-based thinkers believe:
-
Products offering protected lifetime income aren’t necessary as part of a retirement income strategy
-
The stock market offers superior results for retirement needs, wants, and wishes
-
In general, relying on the stock market will probably work
Safety-first thinkers believe:
-
Products offering protected lifetime income are essential for retirement needs
-
Stock market investments can be dedicated to growth for retirement wants and wishes
-
In general, any risk of running out of money for retirement needs is unacceptable
Step one:
Take the quiz
Step three:
Interpret your score
If your probability-based score is higher than your safety-first score
You prefer the stock market to fund either most or all of your needs, wants, and wishes. But you may also be interested in sources of protected income for some of your retirement needs.
If your score is 5 for probability-based and 5 for safety-first
You prefer a blend of stock market investments and protected lifetime income for your needs, wants and wishes.
If your safety-first score is higher than your probability based score
You prefer protected income sources for either most or all of your retirement needs and a blend of protected/unprotected income sources for your wants and wishes.
Step four:
Take the next step
Now that you know your probability-based and safety-first scores, work with your financial professional to:
-
Start planning your retirement needs, wants, and wishes. For example, while eating out may be a “want” to some, it may be a “need” to you.
-
Estimate your monthly expenses for each of your retirement needs, wants, and wishes.
-
Calculate your total monthly expenses for your retirement.
Once you’ve completed the above, your financial professional can use your income style score and your estimated retirement expenses to help you build a strategy that’s right for you.
- This may include helping you determine how much to pull from safety-first income sources (such as Social Security, a pension, and/or an annuity) and probability-based income sources (such as an IRA or 401(k) plan.
- For example, if your total expenses are estimated to be $10,000 a month, your safety-first score is 6, and your probability-based score is 4, you may need to generate $6,000 a month from protected income sources and $4,000 from probability-based sources.
Here’s to funding your retirement needs, wants, and wishes!
This material is intended to provide educational information regarding either the features and mechanics of the product or for general reference/education and is intended for general public use only. It should not be considered, and does not constitute, personalized investment advice. The issuing insurance company is not an investment adviser nor registered as such with the SEC or any state securities regulatory authority. It’s not acting in any fiduciary capacity with respect to any contract and/or investment.
Annuities are issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana. Registered products are underwritten and distributed by Global Atlantic Distributors, LLC.
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult a tax or legal counsel for advice.
Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries, including Accordia Life and Annuity Company, Commonwealth Annuity and Life Insurance Company, Forethought Life Insurance Company and Global Atlantic Re Limited. Each subsidiary is responsible for its own financial and contractual obligations. These subsidiaries are not authorized to do business in New York.
5011055.1