As financial advisors, we have substantial roles in our clients’ lives as they plan for retirement. Some of us might have experienced a recent role increase due to what some have called “the worst financial crisis since the Great Depression.” As trusted advisors, this is a time that we are called upon by our clients for our professional and financial acumen.
While others wring their hands about the stock market and the state of our economy, it is incumbent upon us to use this as an opportunity to further educate and prepare our senior clients for their future. One way we can do this is by proactively advising them about the “lifeboats” that can protect them and their loved ones from the harsh realities of life.
There are three major lifeboats every senior should consider.
The first, annuities, provides guaranteed income that cannot be outlived. Along with Social Security, pensions and military retired pay, annuities provide income for daily living expenses without requiring withdrawals from long-term savings and investments. Annuities also enjoy the power of tax deferral, so earnings are not taxed until withdrawn, allowing money to grow faster.