Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Annuities

Failing to plan is planning to fail

Your article was successfully shared with the contacts you provided.

1. Planning for an average life expectancy. Playing entirely by the law of averages, you have a 50 percent chance of being wrong.

2. Failing to adequately account for inflation. Even at a mild inflation rate, you lose about one-third of your purchasing power every 10 years.

3. Not understanding the “70 1/2 tax trap.” Forced distributions from IRAs and 401(k)s at age 70 1/2 can push retirees into a higher marginal tax bracket and cause up to 85 percent of their Social Security benefit payouts to be taxed.

4. Not having investments properly diversified. Spreading the wealth is one of the best strategies for protecting your clients’ assets.

5. Withdrawing from growth investments in down years. Do so during an unprescedented downturn in the market, and the odds are overwhelming that they will not be able to recover their original principal

Source: Gaynes Financial Services, Inc.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.