The first half of 2020 has been a rollercoaster ride. The COVID-19 pandemic completely altered our way of life and threw the economy into a tailspin. Most states have started the reopening process, but there is still significant uncertainty about the long-term impact of coronavirus and how long the pandemic will continue.
 
Federal Reserve Chairman Jerome Powell recently said the economy faces a “long road” to recovery, and predicted the process may take through 2022.1 While the recovery may be a long-term journey, there have been some signs of hope in recent months:

The stock market had been enjoying the longest bull market in history before the coronavirus pandemic hit.2 The bull market came to an abrupt end starting in late February. On February 20, the S&P hit a high of 3373. From that point through March 23, the S&P fell to 2237, a decline of 33.7%.3
 
However, since that time, the market has increased to 3115 through June 18. That’s an increase of 39.25%. The S&P is nearly back to its pre-COVID levels.3
 
Of course, it’s impossible to predict the future direction of the markets. Just because the market has been on an upswing doesn’t mean it will continue. A spike in cases or a second round of shutdowns could send the markets back into a decline.

The pandemic has driven unemployment to record-high levels. Through mid-June, the country had 13 consecutive weeks with more than 1 million new jobless claims. Prior to the coronavirus pandemic, the record for a single week was 695,000 in May 1982.4
 
The good news is that jobless claims have been declining. At the beginning of the pandemic, weekly jobless claims exceeded 6 million. In fact, up until late-May, they exceeded 2 million. So while jobless claims remain at record highs, they are on the decline. The amount of continuing claims has also dropped from 25 million in early May to just over 20 million in early June.4

Consumer spending was impacted significantly by the COVID-19 pandemic. That’s not surprising, given most states were effectively shut down for two months. In April, consumer spending dropped by 16.4%, a record monthly decline.5
 
In May, consumer spending set another record—this time for biggest monthly increase. The figure rose by 17.7%, driven by large increases in clothing (188%), furniture (+90%), sporting goods (+88%), and electronics (+55).5
 
Consumer spending by itself doesn’t mean the economy is on the path to recovery. There are still plenty of uncertainties in the economy. However, it is a good sign that consumer spending is nearly back to its pre-pandemic levels.
 
This is uncharted territory for all of us. The situation and data changes so fast that it’s impossible to project where the economy may be headed. A comprehensive strategy that aligns with your goals and risk-tolerance can keep you on track to meet your long-term objectives.
 
Let’s connect today and talk about your concerns, questions and challenges. At Florida Retirement Solutions, we can help you develop and implement a strategy. Contact us today and let’s start the conversation.
 
 
1https://www.marketwatch.com/story/fed-sees-rates-near-zero-through-2022-says-asset-purchases-will-continue-2020-06-10
2https://www.cnn.com/2020/03/11/investing/bear-market-stocks-recession/index.html
3https://www.google.com/search?q=INDEXSP:.INX&tbm=fin&stick=H4sIAAAAAAAAAONgecRowi3w8sc9YSntSWtOXmNU5eIKzsgvd80rySypFBLnYoOyeKW4uTj1c_UNDM0qi4t5FrHyePq5uEYEB1jpefpFAAAU6wGESAAAAA#scso=_hL3sXpOQHsnWtAal04OQCA1:0
4https://www.cnbc.com/2020/06/18/weekly-jobless-claims.html
5https://finance.yahoo.com/news/consumer-spending-comes-back-with-a-vengeance-in-may-morning-brief-100600715.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20195 - 2020/6/22

What’s your biggest retirement fear? If it’s running out of income in retirement, you’re not alone. According to a recent study from Transamerica, the number one fear for Baby Boomers is outliving their assets and running out of income.1 Boomers aren’t alone. Generation X is also projected to be far behind on their retirement savings, with an average balance of only $64,000.2
 
These numbers may explain why 52% of workers expect to work beyond age 65. Among Boomers, that figure jumps to 68% who expect to or are already working past age 65.3
 
Continuing your career into your late 60s or even early 70s is one way to accumulate more savings and protect your retirement income. However, it’s not the only option. Depending on your goals and needs, you may just need slightly more income to reach your objectives.
 
Below are four creative ways to stabilize your income in retirement:

​The sharing economy is based on individuals sharing their own goods and services with others. Uber is an example. Airbnb is another. There are a growing list of websites and apps that allow you to earn money simply by sharing your own goods, such as your car or extra space in your house.
 
Granted, you may not want to drive an Uber around town. However, that’s not the only option. If you’re an empty nester with extra space, you could rent bedrooms to guests. There are some services that let you rent out storage space. There are even services for renting out tools or other useful goods.
 
The best thing about the sharing economy is that you can participate as much or as little as you like. You set your terms, prices and schedule, so it doesn’t come with the commitment of actual employment. Be creative and research opportunities to generate extra income in a way that fits your lifestyle.

​After a career that spanned decades, your most valuable asset may be your experience and knowledge. Why not use that knowledge to generate income after you retire?
 
You could use your industry contacts to become a consultant. Or you could coach or mentor younger individuals in your industry who want your advice. There are plenty of websites that offer a platform to do this.
 
Another option is to talk to your former employer about consulting opportunities. They may want to retain your experience and knowledge and may be willing to do so in a flexible way. Don’t assume that retirement means completely walking away from your career, contacts and experience.

​Do you have life insurance that has a significant amount of cash value? Did you know you can tap into that cash value for supplemental retirement income?
 
You can take withdrawals from your life insurance policy. If you’re withdrawing your own premiums, the distributions are tax-free. If you withdraw earnings, the distributions are taxable.
 
You also may be able to take tax-free loans from the policy, assuming you have enough cash value after the loan to support the death benefit. You repay the loan over time. If you pass away with a remaining balance, that amount is deducted from the death benefit. A financial professional can help you determine if your life insurance makes a good source of supplemental income.

Your concern may not be the amount of your income but rather the certainty of it. You may have to rely on withdrawals from your savings to provide retirement income. Market volatility could make those withdrawals unpredictable. There’s also the risk that you could run out of income if you have a long retirement.
 
One way to minimize those risks is to guarantee your income using a tool like an annuity. You can take up to a certain withdrawal amount every year. Assuming you stay within the policy’s withdrawal limits, your income is guaranteed for life, regardless of how long you live or how the market performs.
 
We can help you develop your retirement income strategy. It starts with an analysis of where you are today and where you want to go. Contact us today at Florida Retirement Solutions. Let’s connect soon and start the conversation.
 
1https://www.kenoshanews.com/business/investment/personal-finance/these-are-baby-boomers-top-3-retirement-fears/article_b5d4a1e0-f853-5beb-9ce6-392d0bd1aa70.html
2https://www.fool.com/retirement/2020/06/16/gen-xers-are-alarmingly-behind-on-retirement-savin.aspx
3https://www.kenoshanews.com/business/investment/personal-finance/more-than-half-of-workers-expect-to-work-past-65-heres-why-you-should-plan/article_3789fd58-82d9-57c0-bfeb-73900f3cb27e.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20197 - 2020/6/22

Do you have an old permanent life insurance policy that has accumulated cash value? Having an unused life insurance policy isn’t a bad thing. It’s certainly better than the alternative.
 
However, your needs today may not be the same as they were when you purchased the policy. You may have purchased your life insurance when you were younger. Perhaps you had young children in the home or a spouse who relied on you for financial support. Maybe you were still in the early stages of your career and saving for the future.
 
Today, your situation may be much different. You may be nearing retirement with a sizable nest egg. Maybe you don’t have a mortgage or other debt that would be a burden to your spouse if you passed away. Perhaps your children are grown and no longer financially dependent on you.
 
You may feel like your life insurance policy is no longer necessary. Why not surrender the policy and take the cash value?
 
Just because your old policy is no longer needed for its original purpose, doesn’t mean it isn’t useful. In fact, you can use it to achieve other goals, like providing supplemental income, leaving a legacy for family, and more.
 
One effective purpose for the policy is to use it to support your grandchildren’s education. In fact, life insurance can be a flexible, efficient tool to support your grandchildren as they further their education.
 
Tax-efficiency. As you may know, cash value accumulates inside a permanent life insurance policy on a tax-deferred basis. You don’t pay taxes on the growth as long as the funds stay inside the policy.
 
However, you also may be able to take tax-free distributions from the policy. One way to do this is by taking withdrawals. When you take a withdrawal, your premiums come out before your gains. Premium distributions are tax-free. Withdrawals of gains are taxed as income.
 
Another way to take a tax-free distribution is to take a loan from the policy’s cash value. You don’t pay taxes on the distribution, and you repay the loan over time. If you pass away before repaying the loan, the balance is deducted from your death benefit.
 
Flexibility. You can take a withdrawal from a life insurance policy at any time for any reason, assuming you have enough cash value in the policy to support the death benefit. That differs from other college savings tools, like 529 plans, which require you to use withdrawals for qualified education expenses.
 
That flexibility could help you support your grandchildren in whatever way they need. For instance, maybe they need help with tuition, but maybe they need more help with other expenses, like food or rent. Or perhaps you have a grandchild who is charting his or her own path and skipping the traditional college experience. You can use your policy to help them in whatever way you like.
 
Financial aid. It’s always important to check with financial aid professionals before making gifts. However, generally speaking, life insurance cash value belonging to grandparents does not count as an asset on a financial aid application. That means you can support your grandchild without hurting their chances to earn scholarships, grants and other forms of aid.
 
You don’t need to have an existing policy to make use of this strategy. If you’re in relatively good health and have assets you would like to use to support your family, you may benefit from purchasing a new policy. We can help you evaluate your goals and determine the right strategy.
 
Let’s connect today and discuss how you can best help your grandchildren make their dreams reality. Contact us today at Florida Retirement Solutions and let’s start the conversation.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20196 - 2020/6/22

The coronavirus pandemic is impacting every corner of American life and most sectors of the economy. For the life insurance industry, the pandemic presents a two-sided threat. In many cases the fallout is being passed onto potential life insurance buyers.
 
The risks for life insurance companies are twofold. On one hand, the epidemic presents heightened mortality risk for insurers, especially among older policyholders and those with existing medical conditions.
 
On the other hand, the financial fallout from the pandemic has driven many people to a more stable asset, which has pushed the yields for 10-year treasuries down to less than 1%. That’s problematic for life insurance companies because they traditionally invest 70% of their assets in long-term bonds and treasuries.1
 
With life insurers facing lower returns and greater risk, they’re changing their offerings. Penn Mutual Life Insurance has stopped selling policies to those 70 and older and those in poor health. Prudential has raised premiums and halted sales of 30-year term policies. Other insurers are limiting their sales of certain types of policies, particularly universal life policies that have guaranteed* death benefits and interest rates.1
 
If you have a need for life insurance or estate planning protection, what are your options? Below are a few steps to consider:

Review your estate planning documents. 

If you can’t get the life insurance policy you need right now, it’s even more important that your estate planning strategy is appropriate for your needs. A will can help you direct assets to the right beneficiaries after your passing. More advanced tools, like a trust, can reduce taxes, probate costs, and other expenses so you can maximize your legacy for your loved ones. A financial professional can help you develop your legacy strategy.

Review your beneficiary-designated assets. 

Life insurance isn’t the only asset that you can pass to beneficiaries. Your 401(k), IRA, annuities, and other qualified accounts all have beneficiary designations. Of course, those designations have to be correct for the assets to go to the correct person.
 
Now is a good time to review those designations and make sure they’re up to date. It’s common for people to forget to remove a former spouse or forget to add a new child to a beneficiary account. If you pass away, it may be too late to correct the mistake after you’re gone.
 
This also may be a good time to find ways to maximize these accounts. For example, if you have a traditional IRA, you may want to consider a conversion to a Roth. This strategy isn’t right for everyone, but it could potentially help you pass on those Roth assets to your beneficiaries tax-free, maximizing your legacy.

Work with a professional. 

Life insurance companies may be tightening their rules and guidelines, but policies are still available. A financial professional can analyze options from a variety of carriers to find the policy that is best for your needs and your budget. They can also help you determine exactly how much coverage and what kind of policy is right for you.
 
Ready to implement a strategy for your legacy needs? Let’s talk about it. Contact us today at Florida Retirement Solutions. We can help you analyze your goals and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.wsj.com/articles/some-americans-are-being-turned-away-trying-to-buy-life-insurance-11589103002
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. 20096 - 2020/5/19

How many sources of income do you plan to have in retirement? If you’re like most Americans, you’ll have income from Social Security. You also may have retirement savings like an IRA or 401(k) that can generate income. What other sources will you have available? How many should you have?

According to a new study from the National Institute on Retirement Security (NIRS), the magic number is three. The study found that retirees who have a combination of three income sources - Social Security, personal savings, and a defined benefit pension - are least likely to be in poverty in retirement. Less than 10% of retirees with all three income sources were in poverty or near poverty.1
 
Poverty is more common among those retirees who have fewer than three sources of income. Among retirees who have only savings and Social Security, but no defined benefit pension, more than 20% are either in poverty or near poverty.1
 
Nearly 40% of retirees rely solely on Social Security for income. Among that group, more than half are either in poverty or near poverty.1
 
Of course, a defined benefit pension isn’t a common benefit these days. Only 16% of Fortune 500 companies offer one.2 It’s also possible that you haven’t saved as much as you would have liked by this stage of your career. If you’re lacking a defined benefit pension or personal savings, how do you replace those streams of income?
 
Use catch-up contributions to boost your savings. 

Are you quickly approaching retirement and feel like you’re behind on your savings? The good news is there is still time to save money and create income for yourself in retirement. If you are age 50 or older, you can contribute up to $19,500 to your 401(k) in 2020, plus an additional $6,500 in catch-up contributions, for a total allowable contribution of $26,000.3
 
You can also contribute up to $6,000 to an IRA, plus an additional $1,000 in catch-up contributions if you’re 50 or older.3 Look for ways to trim your budget and increase your contributions ahead of retirement.
 
Change your plans. 

Another option to boost your retirement income is to adjust your retirement plan. For example, by working a few years longer, you can give yourself more opportunity to save. You also may be able to delay your filing for Social Security, which could increase that source of income.
 
You could also work part-time in retirement. While that may not be ideal, part-time or seasonal work could provide a much-needed income stream to supplement Social Security or savings.

Guarantee your income. 

You may not have access to a defined benefit pension, but that doesn’t mean you can’t have guaranteed* lifetime income. You can use financial vehicles like annuities to generate income that is guaranteed* for life, regardless of how long you live or how the financial markets perform. That stable income can act much like a pension.
 
Ready to plan your retirement income? Let’s talk about it. Contact us today at Florida Retirement Solutions. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
 
 
1https://www.cnbc.com/2020/01/31/americans-shouldnt-rely-on-one-source-of-retirement-incomehow-many-actually-do.html
2https://www.planadviser.com/mere-16-fortune-500-companies-offer-db-plan/
3https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. 20090 - 2020/5/18

The economic fallout from the coronavirus pandemic continues, even as states start to reopen restaurants, retail stores, and other businesses. The crisis brought an end to the bull market that started in 2009 and threatens to usher in a recession.1
 
What does the future hold for the stock market and the economy? When will the economy recover? And how will this crisis impact your retirement and your financial future?
 
It’s impossible to definitively answer those questions. In many ways, this event is unprecedented. We don’t know how long the virus will present a threat, so it’s impossible to predict how or when the economy may recover.
 
However, it is possible to make adjustments to your strategy to minimize risk and take advantage of potential opportunities. It’s also helpful to keep in mind the long-term nature of the economy and the financial markets. Nothing lasts forever, including recessions and bear markets.

Stock Market Performance 

The financial markets have been a rollercoaster since the onset of the pandemic. On February 19, the S&P 500 closed at 3386. On March 23, it closed at 2237, a drop of 33.93%. Since that time, the market S&P has climbed to 2863 as of May 15.2
 
It’s important to remember that the stock market isn’t the same as the economy. A drop in the stock market doesn’t necessarily signal a recession, just like a rise doesn’t necessarily spell an economic recovery.
 
It’s also helpful to remember that bear markets are a natural part of investing. They aren’t always caused by global pandemics, but they do happen. There have been 16 bear markets since 1926. On average, they last 22 months and are followed by a 47% gain in the year following the market’s lowpoint.3 We can’t predict when the market will hit its low point, or if it already has, but if history is any guide, the market will recover at some point.

Economic News 

While the stock market has bounced back somewhat since its March decline, the overall economic news continues to be negative. More than 36 million people have filed for unemployment since late March. In 11 states, more than a quarter of the workforce is unemployed.4
 
In the first quarter, the economy contracted for the first time since the 2008 financial crisis. GDP declined by an annualized rate of 4.8%. That’s not as steep as the GDP decline of 8.4% annualized decline in 2008. However, it’s possible the economy could face a greater decline in the second quarter. Consumer spending, which accounts for 70% of GDP, fell by an annualized rate of 7.6% in the first quarter. That’s the steepest drop for that metric since 1980.5
 
While states may be starting the reopen process, there is still significant uncertainty surrounding the crisis and the economy’s future. The good news is you can take action to minimize risk. Contact us today at Florida Retirement Solutions. We can help you analyze your goals and needs and implement a strategy. Let’s connect today and start the conversation.
 
1https://www.cnn.com/2020/03/11/investing/bear-market-stocks-recession/index.html
2https://www.google.com/search?safe=off&tbm=fin&sxsrf=ALeKk01UjyvpIcf62vDAgyulZ3dZuL1GWg:1589832165005&q=INDEXSP:+.INX&stick=H4sIAAAAAAAAAONgecRowi3w8sc9YSntSWtOXmNU5eIKzsgvd80rySypFBLnYoOyeKW4uTj1c_UNDM0qi4t5FrHyevq5uEYEB1gp6Hn6RQAAItD1MEkAAAA&sa=X&ved=2ahUKEwikycWrmr7pAhWWU80KHfhUBrcQlq4CMAB6BAgBEAE&biw=1536&bih=754&dpr=1.25#scso=_JerCXv0o9o70_A-NwLLYBg1:0
3https://www.fidelity.com/viewpoints/market-and-economic-insights/bear-markets-the-business-cycle-explained
4https://www.nytimes.com/2020/05/14/business/economy/coronavirus-unemployment-claims.html
5https://www.npr.org/sections/coronavirus-live-updates/2020/04/29/847468328/tip-of-the-iceberg-economy-likely-shrank-but-worst-to-come
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20093 - 2020/5/19

​What comes to mind when you think about retirement? Spending time with grandchildren? Traveling to the beach or other favorite locations? Spending time on the golf course?
 
Those might be common paths in retirement, but many retirees are blazing their own trail. In fact, you can chart nearly any course you want in retirement. Below are some examples of non-traditional lifestyles that are growing in popularity among retirees:

Retirement on a cruise ship 

Did you know you can live on a cruise ship? In fact, there is one cruise ship - The World - that is specifically dedicated to retirees who live at sea. You don’t have to choose that ship, though, if you want to spend your retirement on a cruise ship traveling the world. Many cruise lines offer extended options so you can spend months or even years aboard a ship.
 
One study found that living aboard a cruise ship could be more comparable to an assisted-living facility. At the time of the study, a year on a Royal Caribbean cruise ship cost just over $33,000, versus $28,000 for a year in an assisted-living facility. This could be a legitimate option if you want to travel the world in retirement.1

Retirement in an RV 

Perhaps you’d like to downsize, reduce your spending, and also travel the country. An RV may be the way to do it. In fact, there’s an entire community of retirees - known as workampers - who have downsized into an RV and travel the country. They’ll often trade labor or other services for free rent at campsites or other compensation.2
 
The benefits of a workamping lifestyle include reduced spending and perhaps greater financial flexibility. Of course, you’ll also need to be comfortable with a mobile lifestyle and a smaller living space. It’s not for everyone, but if you have a limited budget in retirement and want to explore the open road, this could be an option to consider.

Overseas 

In 2018, more than 400,000 U.S. citizens collected Social Security retirement benefits while living overseas. Canada was the most popular location, with Japan, Mexico, Germany, and the United Kingdom rounding out the top five.3
 
Why retire overseas? The reasons vary for each person. Individuals may have a strong family or professional connection to a country. However, other retirees may choose a country because it offers an affordable cost-of-living, a warm climate, inexpensive health care or other benefits.

Starting a business 

Did you know that more than one-quarter of all new businesses in 2017 were started by those between ages 55 and 64? Entrepreneurship isn’t a young person’s niche anymore. Businesses started by those nearing retirement or in retirement increased 15% since 1996.4
 
In many ways, retirement could be the perfect time to pursue your entrepreneurial dreams. You have the time to invest in the project and you may not feel the pressure to turn a profit immediately. Just be sure to stay within your budget and not risk your nest egg on your new venture. A financial professional can help you fit your entrepreneurial dreams into your retirement strategy.
 
Of course, these are just a few examples of non-traditional retirement paths. You can chart any course you want, and we’re here to help you make your dream a reality. Contact us today at Florida Retirement Solutions. Let’s connect and start planning your unique retirement.
 
1https://www.washingtonpost.com/travel/2020/01/23/did-you-know-you-could-retire-cruise-ship/
2https://www.today.com/series/starttoday/what-s-workamping-guide-downsizing-embracing-rv-lifestyle-t107322
3https://www.marketwatch.com/story/the-no-1-country-retirees-move-to-when-they-ditch-america-2019-07-26
4https://www.bloomberg.com/news/articles/2019-09-20/retirees-are-becoming-new-entrepreneurs
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20028 - 2020/4/23

What’s your strategy for retirement? Is it based on your unique needs and goals? Or is it based on general ideas and conventional retirement wisdom?
 
There are plenty of “experts” online offering retirement wisdom for the masses. In fact, if you search “retirement” on Google, you’ll find more than 880 million results with retirement tips and strategies.
 
The problem with retirement advice for the masses is that it’s not customized to your unique goals. There are plenty of pieces of conventional retirement wisdom that aren’t right for every person or situation. Below are two examples of common retirement income rules and tips that may not be right for you:

You should plan on taking 4% withdrawals from your savings to fund your retirement. 

There are many “back-of-the-napkin” formulas meant to simplify retirement planning. One of the most common is the idea that you can take 4% of your assets as income in retirement. The idea is that if you withdraw 4% each year, your assets will last at least 25 years.
 
There are a few problems with this idea. The first is that not everyone will spend money the same way in retirement. You may want to travel or pursue other activities in the early years of retirement. Some people may need to provide support to children or grandchildren. And some will face costly healthcare issues. Not everyone’s spending is the same.
 
This rule also doesn’t account for inflation. It’s unlikely that your spending will stay the same year after year, making it unlikely that you can take the same withdrawal each year.
 
A better approach is to develop a custom budget and spending plan and then implement a strategy to meet your income needs. You also may want to consider financial vehicles like annuities that can provide guaranteed* income to help you meet your goal.

You will spend less in retirement than you do now. 

Another common piece of retirement advice is that your spending will go down after you retire. Perhaps you’ve heard the idea to plan on spending 80% of your current spending in retirement.

Again, the problem with this advice is that your spending will differ from others. Many retirees actually see their spending increase after they stop working. They fill their free time with travel, shopping, dining out, and other activities that cost money. In the later years of retirement, you could see your medical expenses rise as you face healthcare issues.
 
You may see your spending in certain areas decline after retirement, but that doesn’t mean your overall spending will go down. Consider building a retirement budget that is specific to your goals and your plans. That will give you a better idea of how much you may spend in retirement.
 
Ready to develop a retirement income plan that is specific to your needs and goals? Let’s talk about it. Contact us today at Florida Retirement Solutions. We can help you estimate your income need and implement a strategy. Let’s connect soon and start the conversation.
 
 
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20024 - 2020/4/22

​You may see a new figure on your 401(k) statement in the near future. In December of last year, President Trump signed the SECURE Act, which stands for Setting Up Every Community for Retirement Enhancement. The bill’s goal was to make it easier for Americans to save for retirement.
 
One of the provisions in the bill changes the way 401(k) administrators report account balances to participants. At some point soon, your statement will not only include your account’s balance, investment performance, and other traditional information, but it will also include a projection of your future monthly income.
 
The change is designed to give you another perspective into your progress toward retirement. It’s often difficult to estimate your readiness by looking at a lump sum amount. However, if that lump sum is translated into monthly income, you may get a better idea of whether you’re on track to meet your goals.
 
If you aren’t on track, the good news is you can take action. Below are two steps you can take to enhance your retirement income:

Increase your contributions. 

In 2020, you can contribute up to $19,500 to your 401(k). If you are age 50 or older, you can contribute an additional $6,500, bringing your total potential contribution to $26,000.1
 
Of course, you may not be able to contribute that much this year. Even a modest increase can have an impact on your savings and your future retirement income. One strategy is to gradually increase your contributions over time. Start by increasing your contribution by 1% each year. Eventually, you’ll be contributing the maximum amount.

Guarantee your income. 

Another strategy you could implement is to strategize with products that provide guaranteed income in retirement. The SECURE Act makes it easier for 401(k) plans to offer annuities as a strategy option. These vehicles often provide guarantees on retirement income.
 
For example, you may be guaranteed to withdraw a certain amount of income for life, regardless of how the markets perform or how long you live. That could help you minimize risk and protect your cash flow in retirement.
 
Ready to boost your retirement income? Let’s talk about it. Contact us today at Florida Retirement Solutions. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
 
1https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20021 - 2020/4/22
 
Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.  Annuities are long-term, tax-deferred vehicles designed for retirement and contain some limitations.

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC.