Planning for Future Retirement Income

With many Americans concerned about the future of Social Security, all time high stock indexes and the inevitable looming market crash, the prospects for a secure retirement are uncertain.


ING, a worldwide insurer, recently published in their Retirement Revealed Study, that 48% of respondents, representing more than 4000 adults ages 25-69 with full-time jobs--indicated they did not feel prepared for retirement.


Another ING study earlier this year reported that 57% of US workers have less than $25,000 in retirement savings including IRAs, 401ks and bank savings accounts!


The other 43% of workers who have prepared for retirement may not fully understand how vulnerable their retirement plans are to the perils of life. These risks--from serious illness, premature death, job loss, investment losses or parent care giving, can arise at any time from any angle. These risks can deliver serious setbacks to a retirement savings strategy and make it difficult to recover.


To help protect retirement momentum, here are four tactics than can keep these unpredictable life risks at bay.


1. Take advantage of Group Life policies at work.


They may only be 1-2 times annual salary, but generally are free and provide a base. Every woman or man who has a child or an adult dependent needs to supplement Group Life with their own low cost term policy. Everyone qualifies for 10-25 times their annual salary.


2.Cushioning medical costs with voluntary benefits.


Serious accidents or illnesses cause a need for immediate out-of -pocket expenses including deductibles. Many AFLAC or other Supplemental Accident/Hospital policies can provide cash.


A 2011 study by the National Bureau of Economic Research found that 50% of American's are not able to access $2,000 easily for an unexpected expense. Disability insurance is overlooked by most workers as too expensive. But voluntary plans and low cost plans are available for shorter periods of disability of 2-5 years.


3.Building Retirement Funds through Individual Life Insurance.


Most Americans relate to life insurance in protecting and replacing lost income, paying off the home mortgage or other debts. Very few think of life insurance as guaranteeing a lifetime tax free retirement income stream.


Every financial magazine and newspaper touts the advantages of stocks, bonds and mutual funds as the core retirement asset for IRAs and 401ks. But as we all have experienced over the past 13 years, our portfolios took a beating in 2001 and 2008-09.


Cash values within a Whole Life, Universal Life or an Indexed Universal Life policy can provide the safety, liquidity and lifetime tax free income that most Americans want.


4.Don't Fear Annuities


Annuities have been around since the Romans used them to pay their Centurions in retirement. There are Deferred Annuities(3-7 year CD like), Immediate Annuities for life time income and Fixed Index Annuities for Growth and Lifetime Income with Inflation increases based on the Consumer Price Index of 1-10% per year.


Most Americans have not thought about insuring their Retirement Funds, but rather let the stock market bounce them around for 20-30 years and HOPE they will have enough money to retire. There are other ways to save, grow your money and never lose it.


If you have questions you can call me for a free consultation.

And as always, we are available for any related insurance, retirement or investment questions or concerns you may have.  So again feel free to call or email us at 925-757-6018 or send me an email at


Juan Pablo Blanco, Grady Elliott and the Rest of the Smeed Financial Team
201 Sand Creek Rd. Ste. E
Brentwood, CA 94513




SMEED CPA, Inc | 201 Sand Creek Road, Suite F | Brentwood, CA 94513
The Next Frontier CPA Firm | |
Phone: 925-634-2344 | Fax: 925-634-2346 | Cell: 925-207-6771