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
Variable Annuity
var·i·able an·nu·i·ty
An annuity where your premiums are pooled with other annuity holders and invested in underlying funds and investments offered by the contract. Variable annuities are subject to market risk and can gain or lose money. They typically entail additional investment-related fees.
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