Retirement statistics show that only about half of the US work force is currently saving for retirement. And what’s even worse if that the only real retirement options offered through employers are 401K/403B plans and, outside of employers, Traditional and Roth IRA’s. So what’s wrong with that? What’s wrong is that the majority of retirement plans are wrapped up in a variety of mutual funds. And while the stock market’s long term performance has shown positive gains, the last 15 years have been incredibly volatile.
Are you comfortable with your retirement nest egg open to large fluctuations? It’s taken years for portfolios to recover from the 2008 sub prime mortgage stock market crisis, with many people still trying to make up for their losses. And we saw similar results from the dot com bubble bursting in the early 2000’s. Certainly, there is a place for equities investments, but many individuals and corporations are using a different strategy as a foundation for retirement planning, to not put all their eggs in one basket.
Cash value life insurance. And not just any cash value life insurance, but ‘participating’ whole life insurance (with a mutual company), that is structured to maximize cash value build up. Not all whole life insurance is offered the same way. In fact, after extensive research, we have found two mutual life insurance companies, that offer superior plans. These companies have been around for more than 100 years offering strong, consistent dividend payouts over time, even offering a ‘guaranteed dividend’ chart so that clients can see the ‘worst case scenario’, along with the potential upside. When you have guarantees, much of the guess work is taken out of the equation, which is incredibly important when planning for retirement.
Because who wants to be approaching 55, 60, 65 years of age and hoping the stock market continues to grow or at least maintains itself so that your nest egg doesn’t get cut in half (a la 2008) when you need it most? Not me.