Frequently Asked Questions
A single retirement account, like a 401(k), doesn’t make up a retirement strategy. Unless you hit the lottery, there’s probably not one single element that will help you reach your retirement goals. A holistic retirement approach should include sources for income (preferably at least some sources that are tax-advantaged and guaranteed for life), tax considerations, protection, and legacy planning. Guidance from a financial professional can help pull it all together.
Read more here: Your 401(k) Is Not a Complete Retirement Strategy
There are typically three ways to receive guaranteed lifetime income—Social Security, a defined benefit pension from a private employer or the government, and an annuity. Everyone planning for retirement can create a retirement plan including one, two, or all three of these sources of guaranteed income. A financial professional can help you find out what retirement strategies fit your needs and your goals for retirement.
If your retirement account is with your employer, RMDs will most likely be required when you turn 70 ½. These types of accounts can include 401(k), 403(b), or 457(b) plans; Also, a traditional IRA SEP, SARSEP, or SIMPLE IRA will also subject to RMDs, as well as annuities held in your IRAs.
Glossary
Surrender Period
sur·ren·der pe·ri·od
The amount of time an annuity or life insurance policy owner must wait until he or she can withdraw the full value of the policy without paying a penalty, called a surrender period. Surrender periods are typically between five and ten years, although some may be longer.
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