Retirement Planning Rethinks For 2015

Robert Stammers CFA Institute

Marketwatch contributor Robert Stammers of the CFA Institute discusses an article he wrote an re-assessing your retirement goals in the new year. His article cites 4 important areas for consideration: diversification, debt management, unexpected expenses and the importance of getting professional advice.

Money Management

He writes that this is a good time to "freshen your money management skills and review your level of fiscal discipline. Although you want to build an investment portfolio that can take advantage of (or is insulated from) many different potential market scenarios, the reality is that no one can predict what return the market will provide. The only thing you can directly control is the amount of money that you accumulate to invest. Optimizing the amount of investment capital is also a significant part of investment management, which is about increasing the probability of reaching your investment goals."

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Retirement Planning Changes to Remember in 2015

Forbes contributor Jamie Hopkins tells Retirement News Today Host Scott Drake about retirement planning changes for 2015. There were five changes that occurred in 2014 that everyone planning for retirement needs to know about: 1) decreased creditor protection for inherited IRAs; 2) introduction of qualified longevity annuities to 401(k)s; 3) a reduction in the number of IRA to IRA rollovers; 4) increased access to annuities in target date funds; and 5) the creation of the myRA.

When Annuities Work, When They Don't

Stan Haithcock...Stan the Annuity Man says annuities can be very powerful retirement income tools provided they are used based on contractual guarantees. Retirees and advisors get into trouble when they depend on potential growth outside of the contract.

Annuitization

This is the original design for receiving lifetime income payments from an annuity. This strategy is primarily used with single premium immediate annuities and longevity annuities, but deferred annuities can be annuitized as well.

Not Investments

Annuities are not investments. Annuities are insurance products.  They are contractually guaranteed transfer of risk strategies that solve problems like lifetime income, legacy, or principal protection.  The questions you need to ask yourself are ...when do I need the money?....and  if I died tomorrow, are contractual guarantees in place so that my spouse can continue their current lifestyle uninterrupted without having to manage the assets?