Safe Money Tips


For many people, fixed index annuities are great financial solutions.  Fixed index annuities allow the best of both worlds; providing a guarantee of principal and interest accumulation based (in part) on the movement of a market index with no downside market risk.  With tax deferred growth and guaranteed income for the rest of your life; the fixed index annuity can be a very powerful tool used to meet your retirement goals.


Building a nest egg for the “golden years” can be quite a challenge. But there are financial vehicles that can give you a decided advantage. These vehicles employ the power of tax deferred growth: only pay taxes on the money you spend. For those of you with cd’s, every year you pay taxes on the interest you earn even if you don’t spend it. Using a tax deferred product allows you to only pay taxes on the money you spend.

Safe Money Tip #3: INCOME PLANNING

Being able to enjoy your golden years is a common goal. Adjusting from a working income to that of a non-working income is not always an easy thing. Social security income is limited and the once bountiful pension has been cut or eliminated all together. Having the proper financial tools in place to guarantee income for the rest of your life is essential in fulfilling your retirement lifestyle goals.


According to us department of health and human services, about 70 percent of people over age 65 require some health service. Planning ahead with proper long term care insurance can mean more choices and control regarding the services you receive at the time you need them. In the same fashion, proper life insurance planning can ensure that your bills will be paid, your spouse will be taken care of and provide you peace of mind knowing this won’t be a concern.

Safe Money Tip #5: RISK PLANNING:

As you approach your retirement years, you no longer have the luxuries of time and a salary to offset potential market declines. Putting your money in the appropriate financial products that match your risk tolerance is key. The first step is determining your risk tolerance and the next step is putting together a long term plan. A written retirement plan allows you to take control of your hard earned nest egg.

Safe Money Tip #6: TAX PLANNING

Our economy is very uncertain at best. For this reason, the average retiree generally wants to have as much disposable income available as possible. In an environment of potentially rising taxes, it’s important to incorporate tax planning into all your financial decisions. Are you paying too much in income tax? Do you even know how much you are paying in income tax? Utilizing an income strategy to only pay taxes on the money you spend and not on the money you save can maximize your retirement income stream while minimizing taxes.

Safe Money Tip #7: ESTATE PLANNING

No matter how small your estate may be, estate planning can ensure that your property will go to the people you want, in the way you want and when you want. With proper estate planning, you can save significantly on taxes and attorney fees. At a minimum; a will, durable power of attorney and an estate trust manages your estate in the manner you would like during your life and after you are gone.


Outliving retirement income is a concern for many. With increasing health care costs, taxes and the rising costs of living; many seniors work not because they want to; but rather because they have to. Did you know that experts say social security will only provide approximately 40 percent of the income you need? The responsibility of a comfortable retirement therefore rests upon you putting a strategy in place to pay yourself an income for the rest of your life.


As you retire, it is important that you protect your principal. Take the rule of 100 test. One hundred minus your current age gives your risk percentage. For instance, if you are age 70; 100 minus 70 means that only 30 percent of your retirement funds should be allocated towards added risk. This means 70 percent of your retirement funds should be in fixed guaranteed retirement vehicles designed to protect your principal.


Albert Einstein once said that compound interest was the eighth wonder of the world. Taking advantage of compound interest makes your money work for you. There are tax deferred products that allow for compound interest; you earn interest on your principal, and interest on your interest. Understanding how compound interest can work for you may have a dramatic affect on your retirement planning.

Safe Money Tip #11: 4 STEPS APPROACH:

When thinking about a successful retirement plan, 4 key things come to mind:
1. Protect your principal
2. Accumulate growth
3. Pay yourself a guaranteed income for life
4. Reduce taxes.
A successful retirement plan should have these 4 key elements and using all 4 key elements can allow for a smooth transition from your working years to your golden retirement years.

Safe Money Tip #12: BUCKET INCOME PLAN:

Will you outlive your retirement income? It is a real concern for many. One successful strategy is the bucket income plan. Imagine three buckets. The first bucket provides immediate income for the first five years while the other two buckets are accumulating interest. After the first 5 years, you begin taking income from the second bucket and so on. A properly structured bucket income plan can provide you a guaranteed income stream for the rest of your life.