Planning For Retirement... More Than Just Saving.
It’s Never Too Early to Start
The topic of retirement planning has gained momentum in the last few decades—and for good reason. Most Americans are living longer than ever before. Gone are the days where you could rely primarily on your Social Security benefits to carry you through retirement. The great news is that there are plenty of options available to help supplement your "golden years" and bring greater financial security to this time in your life.
Ideally, the best time to start planning for retirement is at the beginning of your career. However, things happen in life that sometimes get us off track, which is why there are plenty of ways to catch up and strategies to help make the most of what you have.
Most employers offer some kind of employee participation plan where you can elect to set aside pre-tax earnings into an account like a 401(k), SEP-IRA and TSA/403(b). Some companies will add funds in the form of a bonus or even match what an employee contributes. Managed appropriately, these types of investment plans will help you build your retirement savings.
While there are no set rules for growing your nest egg, there are some general guidelines to consider whenever you start to plan:
- Your 20s and 30s: This is the time in your career when most experts agree you can be more aggressive with your investments, weighting your portfolio more heavily with stocks and bonds. It is recommended that you contribute as much as you can to your retirement savings, as these have the potential to grow exponentially.
This is also a great time to consider purchasing a home, not only as an investment, but also as a source of tax breaks.
- Your 40s and 50s: During these years, continue putting as much as you can into your retirement savings accounts. At age 50, you will be eligible to make "catch up" contributions to your retirement savings accounts. As you get closer to retirement, you may consider shifting your investments from riskier stocks to more conservative bonds and money market accounts.
Also compare your mortgage interest rate with current market rates, refinancing if it is in your favor.
- Your 60s and beyond: This is the time to seriously look at what your expected Social Security benefits will be. You should begin talking with your financial advisor about when to withdraw money from your retirement accounts and how to plan your estate for your heirs. By this time, you’ll likely be ready to reduce your ownership of stocks and increase your investment in conservative products.
Once you have set a date to retire, you will want to begin the process of applying for all of your expected benefits. If you think you may want to continue working part-time after officially retiring, check into how that might affect your Social Security income or taxes.
Annuities: Your Retirement Paycheck
There is one retirement financial product that may be designed specifically to last as long as you live—an annuity. There are several types of annuities available. It is recommended that you educate yourself and work with an expert, like your Gleaner sales representative, when selecting an annuity or any other financial product, so that you will be able to make the best choice.
The primary function of an annuity is to convert your savings into a reliable income stream. Annuities are tax-deferred, so you don't pay taxes on the interest you earn until you take a distribution. Taxes will vary depending on your settlement option when you begin to draw from it.
When selecting an annuity product, be prepared to discuss your investment goals, your current financial situation, and your future retirement plans with your representative. Knowing all of this information will help you determine which product is best suited for your needs.
Annuities can be purchased directly from an insurance organization, like Gleaner, or from other financial institutions that act on behalf of the insurance company. Be sure your sales representative is fully trained. All of Gleaner’s representatives pass state required training.
There are a few options when choosing an annuity product:
- Pay lump sum or installments? Gleaner offers both single and flexible premium plans. A single premium annuity can be used when you have a large lump sum that you want to invest. Flexible premium plans allow you the flexibility to make as many premium payments as you decide. You can pay premiums monthly, yearly, or deduct payments directly from your paycheck.
- Fixed Annuity? A fixed annuity grows with a set interest rate for the length of time described in your certificate. Gleaner offers a variety of fixed annuities that include varying lengths of time such as three years, five years, six or eight year periods.
- Immediate or later payments?
- An immediate annuity allows you to start receiving payments right away. A deferred annuity lets you set a time in the future to begin receiving payments.
Gleaner Annuity Products
As part of our long tradition of taking care of our members and their families, Gleaner is proud to offer an assortment of guaranteed, fixed annuities. The Gleaner Golden Annuities is our latest product line, featuring the "Harvest 3," "Harvest 5," "Harvest 6," and "Harvest 8" options.
Our attractive and competitive portfolio features:
• A competitive, guaranteed accumulation rate.
• The ability to annually withdraw up to 10 percent of the accumulated value of your annuity without a surrender charge.
• One hundred percent of your contribution credited to your account.
• No sales charges or annual maintenance fees.
• Surrender charge periods that range from three to eight years.
• Upon death, the full value of your annuity will be paid directly to your beneficiaries, avoiding the costs, delays, and publicity of probate.
A variety of settlement options are available with every Gleaner annuity.
As with any type of financial planning, you should consider working with a financial advisor, like a Gleaner sales representative, to find the best retirement solution for your lifestyle. An experienced Gleaner representative can help you make the right decisions for you and your family.
Click on Products and Benefits to learn more about our annuity products and to request an appointment with your local Gleaner representative.
Together we can be prepared for retirement and make the most out of the best time of our lives!
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