Real Guarantees, Retirements Great Divide

June 10, 2013 - PRLog -- In today's world guarantees of any kind seem to be uncommon. With a lot of uncertainty in this world it has become hard for companies, people and even the government to provide or even say the word guarantee. The best we can do now days is a warranty or guarantee that has a list of rules that if not followed the agreement is voided.

As many baby boomers head toward retirement the word guarantee seems to be to good to be true. A lot of retirees especially from this generation fell victim not to the 2008 economic down turn which took many retirees by surprise, but fell victim to the lack of guarantees. These guarantees would have provided them a level of safety during these kind of economic down turns.

One question is how did this generation (baby boomers) move so far from safety in guarantee's. Unlike the silent generation who worked to provided guarantee’s for when they retired. This generation worked to receive either a pension, or used annuities to achieve financial security for when they retired.

One of the reasons the baby boomers have moved so far away from safety in the guarantee is the creation of the 401k. This tax code introduced in 1978 took off in the 80’s and 90’s and helped give people a chance to save for retirement on their own. Along with employer matching, these plans provided the opportunity for gains usually tied to a portfolio attached to some part of the stock market.

The 401k, although it has helped many people save for retirement and been a wonderful tool for the employee and employer, it has lacked the ability to provide the type of safety that is needed when looking to save for retirement.

A lot of people believe that a guarantee for retirement income and assets doesn’t exist. The believe that if it does, it probably doesn’t make much return. However, the fact is guarantee’s such as safety of principle and guaranteed income are out there and available today. Just as the silent generation relied on guarantees for retirement, retirees now days can also rely on similar guarantees.

These guarantees can be found through Fixed Index Annuities (F.I.A’s). These types of annuities are not the same annuities people had twenty years ago. In fact these accounts can provide the ability to receive better returns than a guaranteed fixed interest rate account. They can even allow you to receive a return linked to a stock market index, without your account actually being invested directly in the market .

Without actually being in the market you are able to receive the kind of guarantees that annuities are known for. As well as the protection of your principal when you are not making withdrawals for supplemental income. These guarantees are alive and well today for retirement .

The best way to know if a plan like this will help you in building a retirement plan is getting a thorough education of the types available and how they might be structured to work for you.
An annuity is not appropriate for everyone, but I believe everyone should at least seek an educated adviser to learn where they may fit in their portfolio and help them accomplish their future goals. These accounts should not be overlooked when balancing or creating a retirement portfolio.

Josh is frequently seen in FOX,  ABC, The Chicago Chronicle, and CBS Money Watch. In his years as a professional, Joshua has seen the lifelong impact of retirement preparation – or lack of prepration—every day. Commenting on his career, Joshua says, “I feel blessed to have helped so many people prepare for the day when they don’t have to work any longer. As well as helping those in retirement keep it that way.” You can find more about Josh at www.aaronmatthewsfinancial.com

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