Retirement planning doesn’t just involve savings and investments. Protecting what you’ve already accumulated—including your ability to earn or receive an income—is also important.

Insurance
One of the best ways to absorb the risks to your assets is to transfer the risk to a well-crafted insurance program:

Life Insurance—it’s more than just a way to pay a death benefit in the event of catastrophe. With a well-designed policy you can:

• Combine savings/investment with the protection of your family in one policy.
• Elect a cash-out feature that allows you to withdraw while you are still alive, or leave your assets exclusively for your heirs.
• Use insurance policies to possibly reduce or eliminate estate tax for your survivors.
• Direct a ready source of cash when and where it’s needed most after you die.

Long-Term Disability—your chance of becoming disabled due to illness or injury is a significant risk during your work years. Having a plan in place in the event that you are unable to return to work may make your financial life easier in the long run.

Annuities—annuities are not only a great way to save for retirement on a tax-deferred basis, they can protect your retirement assets from market risk, while also protecting your heirs through death benefits* that may exceed the market value of your investments.

Part of retirement planning is preparing for what happens to your assets in the event of your death. Estate planning does just that. Wills and trusts aren’t just for wealthy individuals, they are for anyone who wants to keep the government from deciding where your assets go after you die. Estate planning not only protects your heirs from unnecessary taxation, it allows medical and financial decisions to be made as you wish them if you become incapacitated or die.

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore. For professional advice, contact a Certified Financial Advisor.