Financial Services

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Preparing for retirement should create excitement, not concern. Yet for many, that’s not necessarily the case.

According to the Schroders 2022 U.S. Retirement Survey, fewer than one in four U.S. investors ranging from 45 to 75 years old (23%) said they have a written plan to guide their retirement decisions. In the same survey, Americans on average said it will take more than $1 million in savings to retire comfortably, but only a quarter of them (24%) said they expected to reach the $1 million savings threshold.1 Those stats help explain why more than half of Americans (56%) are concerned about achieving financial security during retirement.2

That’s where we come in.

We use insurance products, such as fixed annuities, and a variety of investment products to help you build financial strategies. From tax-efficient strategies to investment advice to protecting some of your assets — we’ll cover as many bases as possible to help you create a strategy that supports your retirement lifestyle and long-term financial goals.

Once we understand your financial situation, risk tolerance and investment objectives, we can help you decide which types of products and services fit within your financial strategy.

1 Gregg Greenberg. Investment News. May 25, 2022. “Surveys show Americans prefer retirement planners, lack plans.” https://www.investmentnews.com/surveys-show-americans-prefer-retirement-planners-lack-plans-221930. Accessed Aug. 15, 2022.

2 National Institute on Retirement Security. February 2021. "Retirement Insecurity 2021: Americans' Views of Retirement." https://www.nirsonline.org/wp-content/uploads/2021/02/FINAL-Retirement-Insecurity-2021-.pdf. Accessed Aug. 15, 2022.

 

At Ensign Wealth Management, we can offer you the following products and services:

(Click the images below to learn more about each.)

Will I have enough?

Life expectancy in the United States continues to increase. The Social Security Administration reported that men who reached the age of 65 on April 1, 2022, could expect to live until 84.1; the average life expectancy for women who reached 65 was even higher at 86.7.1

While that’s great news, one drawback to a longer life is the possibility of outliving your savings. In fact, one study showed that almost half of Americans worry they won’t have enough money to make it through retirement.2

Figuring out the best way to make your savings stretch over the next 25 to 30 years can not only be confusing, it can also be overwhelming.

But it doesn’t have to be that way.

Insurance products like annuities can provide a steady and reliable income stream for the rest of your life, while investment products create opportunities for long-term growth. We can help you incorporate both in a financial strategy designed to put you on the path to the retirement lifestyle you want.

1 Social Security Administration. “Important Things to Consider When Planning for Retirement: What is Your Life Expectancy.” https://www.ssa.gov/benefits/retirement/planner/otherthings.html?tl=1. Accessed Aug. 15, 2022.

2 E. Napoletano, Contributor. John Schmidt, Editor. Forbes Advisor. Updated July 15, 2022. “Top 4 Retirement Worries — And How To Handle them.” https://www.forbes.com/advisor/retirement/top-retirement-worries/. Accessed Aug. 15, 2022

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Retirement Income Strategies

Wealth Management

Generally speaking, the longer you invest, the more potential your money has to grow. If you are still trying to recover from losses in recent years and you’re looking to get back on track to accumulating wealth, you may want to consider a more aggressive asset allocation with at least a portion of your money. However, those who’ve lost in the stock market may sometimes be a little more wary of approaches that increase their market risks.

If that sounds like you, there are more conservative investment options available that provide the potential for wealth accumulation. Using these investment options in conjunction with insurance contracts such as annuities can help you design a more conservative retirement strategy. After all, the last thing you want to do in retirement is lose more ground during another market correction.

Investments

You worked hard for your assets. Now they can work for you.

Inflation, unexpected expenses, once-in-a-lifetime travel opportunities… Predicting the unpredictable is impossible. That’s why it may be prudent to have a certain amount of your nest egg in investment products.

Investing involves risk, and there are no ways to guarantee that you won’t lose money, but having a certain portion of your assets in the market gives you the opportunity to build on your existing wealth. Over time, that growth potential could help you offset the effects of inflation and other factors that erode the purchasing power of your assets — assets you may be counting on to see you to and through retirement.

From stocks and bonds to mutual funds and retirement accounts, we welcome the opportunity to help you figure out where investment products might fit into your overall financial strategy.

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Wealth Management & Investments

You’ve got plans — a lot of them. Wouldn’t it be more fun to focus on your dreams than constantly worry about what the market’s doing?

Diversifying your retirement assets among a variety of vehicles — including a mix of both insurance products and investments, depending on what is appropriate for your situation — may offer you the best chance of meeting your retirement income goals.

Anyone who invests in the market should understand it involves the potential risk of principal. So, to provide some security not found in the stock market, you may want to include some insurance products in your financial strategy. These products, such as annuities, can provide supplemental income throughout retirement and protect your money from declines due to stock market losses.

 All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any references to guarantees or asset protection generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.  

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Asset Protection Strategies

A 2021 study indicated that more than two-thirds of Americans (67%) say the United States is facing a retirement crisis and an almost identical percentage (68%) say workers can’t save enough on their own to achieve retirement security. According to that same study, more than half (54%) would be willing to sacrifice some savings to purchase guaranteed monthly include for as long as they live.1

Wild market swings like those we saw during the first half of 2022 also can push people away from stocks and toward steadier income options. In fact, according to Limra, an insurance industry group, 2022 annuity sales were projected to hit $267 to $288 billion, eclipsing the record of $265 billion set in 2008.2

If you’re concerned about market risk or seeking investment stability, adding an annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed.

1 National Institute on Retirement Security. February 2021. "Retirement Insecurity 2021: Americans' Views of Retirement." https://www.nirsonline.org/wp-content/uploads/2021/02/FINAL-Retirement-Insecurity-2021-.pdf. Accessed Aug. 15, 2022.

2 Greg Iacurci. CNBC. June 9, 2022. “Annuity sales rise, buoyed by market fears and higher interest rates. What to know before you buy.” https://www.cnbc.com/2022/06/09/annuity-sales-buoyed-by-fear-higher-rates-what-to-know-before-buying.html. Accessed Aug. 15, 2022.

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Annuities

If helping loved ones maintain a standard of living and avoid financial hardships after your passing is a priority for you, life insurance products can help. A general rule is that you may want to seek coverage between five and seven times your gross annual income. As far as the various types of policies go, they can generally be placed into one of two categories: term and permanent.

Term insurance generally provides coverage for a specified period of time and pays out a specified amount of coverage to your beneficiaries only if you die within that time period. A permanent insurance policy, on the other hand, will stay permanently in effect for the rest of your life, as long as premiums continue to be paid.

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Life Insurance

Rising taxes may be a concern for anyone — especially for individuals approaching retirement. Having a solid strategy in place for how you will pay taxes on your retirement income can be an important component to living on a fixed income and avoiding surprises come tax time.

Investing in or purchasing a tax-deferred vehicle means your money can compound interest for years, without paying current income taxes, potentially allowing it to earn interest at a faster rate. Tax-deferred vehicles only allow you to defer paying income taxes until the money is withdrawn — presumably during retirement when you may be in a lower tax bracket. However, few financial vehicles avoid taxes altogether.

Because tax-deferred vehicles are generally designed to help individuals work toward specific long-term goals, there may be restrictions on when money can be withdrawn without penalty. Early withdrawals may be subject to charges and fees. Withdrawals prior to age 59 ½ may be subject to an additional 10 percent federal tax.

Our firm is not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. You should consult a legal or tax professional on any such matters.

investments

Tax-Efficient Strategies

As the oldest baby boomers continue to wind through their 70s, one of the biggest concerns may not be outliving income but outliving good health. With the monthly median cost for home health aide at $5,148 and assisted living facility costs averaging $4,500 per month,1 the concern is understandably daunting. Does your retirement income strategy account for that possibility? Would you be prepared to pay twice that amount as a married couple?

Considering that you could have to reduce your financial means before Medicaid will pay for long-term care and neither your employer group health insurance nor major medical insurance will cover long-term care, you may want to consider planning ahead for these potential expenses.

We can help evaluate your situation and determine what kinds of products could fit into a comprehensive long-term care strategy, one that is suited to your needs and circumstances.

1 Genworth. June 2, 2022. “Cost of Care Survey.” https://www.genworth.com/aging-and-you/finances/cost-of-care.html. Accessed Aug. 15, 2022.

Our firm is not affiliated with the U.S. government or any governmental agency.

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Long-Term Care Strategies

When you change jobs or retire, there are four things you can generally do with the assets in any employer-sponsored retirement plan:

  1. Leave the money where it is.
  2. Take the cash (and pay income taxes and perhaps a 10 percent additional federal tax if you are younger than age 59½).
  3. Transfer the money to another employer plan (if the new plan allows).
  4. Roll the money over into an IRA.

Rolling over from one qualified plan to another qualified plan allows your money to continue growing tax-deferred until you receive distributions in retirement. We can help you determine if a rollover is the right move for you.

Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA. 

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Ira & 401(k) Rollovers

IRA accounts have become one of the largest types of assets inherited by loved ones. If you don’t anticipate needing your IRA money in retirement, you may wish to consider a legacy planning strategy that potentially reduces taxes and increases the payout your beneficiaries will receive upon your death.

You may want to use some of the value in your IRA to provide your beneficiaries with a regular stream of income while leaving the balance of IRA assets invested for tax-deferred growth. The result may yield substantially more money paid out over the course of your beneficiaries’ lifetimes.

We can help you evaluate your financial situation to determine if IRA legacy planning could help you, and we can work with attorneys and tax professionals to help you meet your goal of structuring a long-lasting inheritance for your loved ones.

Our firm is not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. You should consult a legal or tax professional on any such matters.

long-term

Ira Legacy Planning

All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any references to guarantees or asset protection generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.  

Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA. 

Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 

We can also refer you to professionals who provide the following services:

Trusts | Probate | Charitable Giving | Estate Planning | Tax Planning

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