Retirement Planning

What Does SAFE Mean to You? [Video]

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What Does SAFE Mean to You?
We are looking at an acronym that summarizes the steps to a confident retirement. S.A.F.E.
“S” stands for secure income. Secure Income means income that you can count on no matter what happens to the economy or stock market. Many retirees’ think if they have saved up or accumulated enough, then they can just withdrawal a percentage each year. The common withdrawal percentage is 4%. This is because an economist in the 1990’s determined that this percentage could be safely withdrawn for at least 30 years in retirement. But interest rates today are much lower, & the stock market today is very volatile. If you withdrawal 4% today, it might very well work out for you if the market is strong. But if the market has downturns, especially early in retirement, this can lead to a substantial reduction in assets or even the possibility of completely depleting your investment. Science & math have concluded that helping to create a secure income could be the most optimal way to eliminate the worry of running out of money in retirement. The three best investment tools for creating this secure income are social security, pensions, & income annuities.
“A” in SAFE stands for asset protection strategies. After creating a secure income stream for the rest of your life, you should look to help protect your assets from various risk factors. When the words “asset protection strategy” are used, insurance comes to mind. It is important to have the proper insurance coverage & enough limit to help protect you from a catastrophe. But asset protection strategies could go way beyond insurance. Another tool in an asset protection strategy is the use of different entities to limit the potential exposure in any one entity. Tax rate risk is another large risk. With the growing national debt, it is very likely that future tax rates may increase. It is important to have strategies to reduce the amount taxes take out of your income. Inflation is another threat that is important to address. Retirees are living longer in retirement. These extra years provide the opportunity for inflation to substantially reduce your purchasing power. Stock market volatility & health catastrophes such as the need for long term care also require attention. A complete retirement plan should at the least discuss & address each of these issues.
”F” in SAFE stands for financial growth. The terms safe & secure in reference to retirement, might convey that the plan is overly conservative. On the contrary, by first addressing secure income & asset protection strategy, it allows you to be more aggressive in your remaining assets. If you don’t follow the “SAFE” strategy, you may be forced to sell your stocks at the worst time, while they are down. By first creating the secure income, you may not be forced to sell when the market is down & might even look at a stock market downturn as a buying opportunity. Having a strategy for financial growth doesn’t have to mean your net worth increases. It might mean your current income increases or enable you to give more to your chosen beneficiary or charity.
“E” in SAFE stands for an efficient legacy plan. Some seniors want to gradually spend down their assets in their lifetime. Some desire to provide for the next generation. Regardless the size of the estate, it is important to make the most of your money by having a plan in place that will transfer your assets efficiently and effectively. Establishing & reviewing beneficiaries is an important part of your legacy plan, but it isn’t the only component.

Investing involves risk, including the potential loss of principal. Any reference to protection benefits, safety, security, lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified tax professional for guidance before making any purchasing decisions. The information and opinions in these videos are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Advisors Excel. They are given for informational purposes only and are not a solicitation to buy or sell the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice to meet the particular needs of an individual’s situation. Bradshaw & Weil Wealth Management, LLC is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Bradshaw & Weil Wealth Management, LLC are not affiliated companies. 0127543404/22