We All Want Choices, Right? With the Power of Choice You Can Have Your Best Retirement
by Ande Frazier
October 9, 2018 .2 min read
Everybody wants options, right? We want options for what we want to cook for dinner, for the ice cream we choose, for what clothes we want to wear, for what projects we want to take on - in many cases the more options, the better. Let’s think about this in terms of retirement. Would you want to have only one option of how you will be able to enjoy your wealth in your golden years?
What Happens When You’re Left With Little Choice?
49% of current retirees expect Social Security to be their sole or primary source of income in retirement. Last year, the average social security payout per year was $16,000. Relying on social security alone is extremely unrealistic, and leaves you with little options. What about relying on your 401(k)? While you should be putting money into this savings account, many people don’t understand all the rules and regulations around this, which could leave you with a lot less in retirement than you expected. So, now what do we do? The more options the better. Set yourself up to have choices with how you want to enjoy your retirement.
Life Insurance Gives You More Options
Not only does life insurance protect you and your family from the unexpected, but it also gives your far more options in how you can enjoy your wealth in retirement. Since there is no way to know what taxes will be in the future, what your health will be or even when you will retire, you should think about creating multiple sources to access income from. Having flexibility and choice is enhanced when you add life insurance into your plan. By having a death benefit in place, you may decide to distribute income differently from your assets. There is a sense of confidence in taking this approach because you know any asset spent in retirement will be replaced upon death. This way, you will be in the best position possible to design the strategy that is right for you and your family at that time.
Leverage Your Options
Leverage your options in retirement so you have the the success you deserve. Taking advantage of your social security options along with all of your other retirement accounts can maximize your potential. Social security can be collected at the age of 62, but since this is your lowest amount of lifetime retirement income, you may want to wait until a bit later to start taking money. This is not always an option unless you have other sources of income to draw from while you prolong taking social security. Again, having choices gives you flexibility to make the best decision at that particular time.
You don’t want to be scrambling for money in your golden years. Make sure you have a strategy that works for you and your family in the long term, and gives you the power of choosing how you wish to retire.
Ande has made it her mission to break down the emotional, behavioral and societal barriers that stand between women and strong financial foundations.
She's widely recognized as a driving force in the financial community, having risen to the top of the primarily male-dominated insurance world as the former head of a multi-million-dollar fintech company and a VP at Penn Mutual.
Ande launched myWorth to inspire a financial awakening among women who are eager to take control of their financial journeys. Her first book will be published in October 2019.