Choosing The Right Retirement Strategy in an Uncertain Economy

You already know the importance of saving for retirement throughout your working years. But if you’re not sure exactly how to do that, you aren’t alone.

Most people would advise you to set aside a specific sum of money while making strategic investments. But where do you keep that sum? How do you create an investment strategy and invest without losing too much money? How do you make your hard-earned money grow over time?

It’s Never Too Early

Retirement planning might sound complex, but once you’ve set your retirement goals and developed a sound strategy for pursuing them, you can focus on putting away more money while giving your investments time to grow. It’s never too early to start!

If you want to maximize your chances of creating a solid retirement fund to support you through your golden years, a qualified financial advisor can help you every step of the way.

Your advisor will help you develop an investment strategy and set up annuities, IRAs, and other retirement accounts. With a competent guide, you’ll be well on your way to success.

Ty Young, CEO of the preeminent retirement planning firm, Ty J. Young Wealth Management, answers common questions we had about how to invest in your future and plan a retirement free of financial stress. 

Where does one start when planning a retirement strategy?

Ty Young: You start with setting retirement goals: an age to retire, a monthly income in retirement, and a lump sum of money to make you feel secure.

How do I know what my risk tolerance is?

TY: Easy. Ask yourself, how much of your money are you willing to lose?

If the answer is 100% to try and double your money, your risk tolerance is very high. If your answer is 0%, you just want to earn a reasonable rate of return, your risk tolerance is very low. Most people fall somewhere in the middle. 

How should I choose an investing style that works for me?

TY: Once you’ve set goals and understand your risk tolerance, work with an advisor to help you determine which investing style is right for you. 

Are 401Ks and IRAs my only options when it comes to retirement accounts?

TY: 401Ks and IRAs are great options when it comes to retirement accounts, but they are not your only options.

You can put unlimited contributions into a non-qualified, tax-deferred annuity.

This is one of the most overlooked and underused types of retirement accounts.

 What types of annuities are there and what are the key differences?

TY: The types of deferred annuities:

  1. Fixed – Means you get a fixed, guaranteed rate for a guaranteed number of years. This type of annuity is ideal if you believe interest rates might be going down.
  2. Flexible Fixed – You get a fixed rate that flexes once per year, up if interest rates go up, or down if interest rates go down. This type of annuity is ideal if you believe interest rates might be going up.
  3. Fixed Indexed – You participate in the gains of the stock market, but you don’t participate in the losses of the stock market. This type of annuity is ideal if you want stock market index gains without the risk of losing money when the stock market goes down.
  4. Variable – Effectively is a group of mutual funds, packaged under an annuity umbrella… which gives you tax-deferred growth with added insurance which guarantees a death benefit. Be careful –  this type of annuity can have very high fees.

Are there benefits of annuities over other types of investment accounts?

TY: There are benefits of annuities over other types of investment accounts. The proper annuity used correctly is a tremendous tool to achieve retirement goals. Annuities can provide benefits that other investments cannot. Including, stock market type growth without stock market risk.

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