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Baby Boomers, those born from 1946-1964, are a generation dwarfing the prior and subsequent generations. They have made their mark on history having been better educated, more innovative and more successful than any past generation. According to Wikipedia, the Baby Boomers “As a group, were the wealthiest, most active, and most physically fit generation.”Now, Baby Boomers are turning 65 and retiring at the rate of 8-10,000 per day for the next two decades. Planning for retirement has been hampered by the Great Recession. According to US News, “older adults—generally those 55 and older —may have insufficient time to rebuild depleted retirement savings due to sharp declines in financial markets and home equity, and also may experience increased medical costs."
Prior to the late 1970s, most companies offered Defined Benefit Plans. Employees would work for the same company for 20-30 years and retire with a pension for the rest of their lives. In the early 1970s, many companies started defaulting on their Defined Benefit Plan obligations resulting in Congress enacting ERISA and the Defined Contribution Plan, also known as the 401(k) plan. This removed the responsibility of a guaranteed retirement or pension plan from the employer and placed the responsibility squarely on the shoulders of the employee. While the employer matched 2-4%, the employee took all the market risk as the 401(k) plans are comprised of securities, stocks, bonds and mutual funds.
The Great Recession caused many Baby Boomers to rethink their retirement plans. Fox Business News’ Casey Dowd reported: “The financial crisis not only dented many baby boomers’ nest eggs, it also reshaped our labor and housing markets. On top of those changes, the health insurance market has also changed over the last decade; especially recently, further complicating the outlook for baby boomers’ financial security when in the golden years.”
However, innovative products have been developed by the insurance industry to help Baby Boomers plan retirement with confidence and enthusiasm. Fixed, indexed annuities have become the new pensions.
Tucson, Arizona-based, Susan Moore Vault, a 24 year insurance professional/owner of Moore Financial Strategies, military veteran, and popular radio host who is endorsed by Laura Ingraham and Glenn Beck, has seen a significant rise in the number of individuals who have turned away from market risk-related securities and instead opted to roll-over 401(k)s into the new annuities.
“Now retirees can create their own pension-type plans that will start with a bonus of up to 12% for their deposit,” said Moore Vault. The annuities have riders with a set amount of annual increase that’s like deciding what year Social Security will start. The fixed indexed annuities are often linked to market indexes, though it is still insurance and not securities. The clients never take any market risk, only related market gains. They can have a rider that provides a lifetime of income just like a pension but, in most cases, the client can still access the money in the account, unlike a traditional pension. This addresses the single biggest fear most retirees have: outliving their money.”
Health care costs are only expected to rise in the future. Moore Vault emphasized the importance of strategic planning and maximizing Social Security. “A good advisor also needs to make clients aware of services available to provide assistance. One such program is the VA Aid and Attendance Pension available to eligible veterans.”
By addressing the biggest concerns of retirees, fear of outliving amassed income, dealing with health care and removing the fear of market volatility decimating savings, Baby Boomers can get on a path to successfully achieve a stress-free retirement.
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Tucson, AZ-based Moore Financial Strategies helps its clients develop a blueprint for retirement. It has a proven track record of experience, and an A+ rating from the Better Business Bureau. President and Chief Strategist of Moore Financial Strategies, Susan Moore Vault, is proud of the fact that none of her clients have ever lost a dime using her safe money strategies. She and her husband are both veterans who understand the need for security. Their ultimate goal is to be certain that no client outlives his or her income.
Contact Info:
Name: Susan L. Moore Vault
Email: Send Email
Organization: Moore Financial Strategies
Phone: 520-296-4464
Website: http://moorefs.com/
Source URL: http://councilofeliteadvisors.com/liftmedia
Release ID: 68925
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