Reliability of Income.

Nothing is more important in retirement. We remain committed to educating retirees about how to protect their retirement assets from any loss while creating guaranteed, lifetime income. 

Our clients want GUARANTEED RESULTS, whether it be for income replacement, wealth preservation or retirement planning, nothing is more important than guarantees and the guarantors behind them.

At Life Cycle Financial Planners, we help our clients create customized solutions at every stage of life. We help minimize unnecessary risk. Our approach to customer relations is rooted in transparency and disclosure. Innovation is the trademark of everything we do.

What Is The Risk of Outliving Your Wealth?

The biggest concerns for people, in or nearing retirement, are lifetime income and longevity risk.

With life expectancy near 90 for a healthy 65 year old, huge implications have emerged. T

he risk of out-living your wealth must be at the foundation of your retirement plan because longevity risk can not be mitigated with risky assets, such as stocks and other equities. But it can be mitigated with properly designed annuity products that guarantee everything. Our knowledge and experience in this area will help you minimize longevity risk.

Guaranteed Income Strategies

Retirement planning is best approached from a risk management perspective, not a total return perspective. To do that requires a completely different mindset for most retirees. Which of your current advisors specializes in guaranteed income solutions in retirement? The answer is probably none of them and that can leave you vulnerable. Income trumps assets in retirement. Assets require attention, monitoring, maintenance and sometimes they require cash infusions. 

Indexed Annuities – Everything Guaranteed.

The differences between an equities portfolio and indexed annuities could not be more profound. In an equities portfolio, nothing is guaranteed. In March of 2020, the entire Dow Jones fell by 30% in a few trading days. In 2008, the S&P fell by 40%. The NASDAQ was crushed both times. In 2000, the NASDAQ led the losses. There is no place to hide when markets are tanking. 

With an indexed annuity, the advantages are clear:

  • Principal is guaranteed; no losses.
  • All gains are kept, added to principal, and can never be lost.
  • Tax deferred growth.
  • Guaranteed, lifetime income you cannot outlive.
To help people better understand the benefits of a fixed income annuity, we are changing the dialogue to educate our clients about the value of guaranteed income in retirement. ROI is the definition of security in retirement  –  Reliability of Income.

Liquidity in retirement is having guaranteed income that cannot be outlived. At retirement, the chance of needing all of our assets to be liquid in order to make a big purchase, deal with something unexpected or be vulnerable to a bad investment decision becomes more and more remote. 

Guaranteed income in retirement is a protective shield from threats such as investment scams, adult children and market volatility.


What is longevity risk? The risk of living too long and outliving your wealth.

Why is longevity risk the number one risk in retirement? Extended life expectancy is creating a simple but serious problems for a growing number of people. For most people at retirement age, income declines or disappears completely. The combination of low interest rates, loss of income and extended life expectancy are the 3 prongs of longevity risk.

Is there an effective and affordable solution to mitigate this risk?  Yes. A guaranteed, indexed annuity, a deferred annuity or a single premium immediate annuity are tools used to hedge longevity risk.

Upon death, does the insurance company keep my money? No, the listed beneficiaries will receive all remaining or unpaid principal within the policy.

Why use an annuity? Retired people who find annuities beneficial are typically attracted to guarantees, no loss of principal, certainty and “sleep insurance”. It is hard to put in context but one of the most important benefits of owning annuities is peace of mind – no stress. Instead of worrying about markets, annuity owners value the consistency and dependability from annuity ownership. Fixed indexed annuities are tax deferred and the insurance company is responsible for all the investing results. They have the best and brightest dedicated to maximizing returns in their indexes. They invest with billions of dollars in many cases. Individual investors cannot match these advantages. As a result, they are among the safest and best solutions for creating security in retirement.

Consider these retirement questions:

1. Including all sources, how much guaranteed, lifetime income will you have in retirement? Are you currently hedged against outliving your money?

2. Can you lose principal? If so, how much is vulnerable?

3. Are you protected from your retirement assets being crushed by mismatches in timing? For example, you may need monthly withdrawals in a time like March 2020, when the Coronavirus struck the markets. Withdrawing money in down markets wreaks havoc on a portfolio.

4. Are you currently mitigating inflation and income taxes?

5. What is your income plan? Is the level of income adequate and sustainable to 85, or 95? If you’re married, what if you or your spouse have to manage the portfolio alone? At 85, or 95? Even the task of watching over a money manager at 90 can be challenging.

6. How much of your fixed expenses do you want covered with guaranteed income?

7. How would a long term care event lasting two years affect your retirement plan?

Consider these annuity tips:

  • What kind of annuity suits you best. How was it determined?
  • Is it fixed, variable or deferred?
  • Should you consider an annuity with 100% liquidity from day one or the shortest surrender charge period. What are the advantages?
  • Beware of misinformation about annuities from uninformed advisors.
  • Give thought to the distribution phase of an annuity? It is likely you will be in the distribution phase longer than the accumulation one.
  • How does the annuity fit into your overall plan? 
  • Make sure the professional you are working with is knowledgeable about issues facing people in retirement.

“The only way to guarantee income is through pensions or annuities”

                                                                                            David Blanchett, Head of Morningstar Retirement Research


Retirement Demographics

  • In the U.S. alone, more than 10,000 individuals retire every day.
  • The number of Americans aged 65 and older will double by 2030.
  • Retirees can expect to live 25-30 years in retirement.
  • Many people want help with Medicare and maximizing Social Security income but don’t know who to ask.
  • More than 20% report that they do not have updated wills or powers of attorney

Take the first step towards creating a guaranteed lifetime income plan for your retirement.

Please reach out to Ted Bernstein today for a complimentary phone consultation. He can be reached at 561-869-4500.


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