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Types of Retirement Income Sources

Retirement is a phase of life that probably every person on earth encounters and all of those people want to enjoy that period. When someone retires they want a main source of income to manage their life well for that they need to start preparing advice while they are working.

They can invest in a single option or they can choose various methods for getting retirement income. All of this heavily depends on your level of retirement planning. According to David Snavley, Some people enjoy their retirement life with Social Security, however, others choose more diversified income streams such as 401(k)s, annuities, pensions, and more. 

When your golden years arrive these following retirement income sources you may be able. If you need help planning for retirement and need income streams, consider working with a financial advisor.

1. Social Security: Social Security does not have any explanation as it is the most common income stream that most retired folks survive on. You get a percentage of pre-retirement earnings in this. The purpose of this method is to supplement your income in retirement and give you a small and regular retirement amount successfully. The amount you get every month depends on the age of the retiree at which you claim Social Security. 

2. Working: The truth is that many retired people do maintain some type of employment while you may want to retire and never think about working again. Many people choose consulting, freelancing, working part-time, or going back to work full-time. There are various factors like poor stock market performance and inflation that cause many retirees to continue to work. Some studies found that retirees in the workforce increased by 3.5 million in the last three years. 

3. Retirement Accounts: Hopefully, you were saving some money in a retirement account during your working years. These accounts are essential retirement income sources for many aged people. These accounts allow you to invest in various assets, including mutual funds and ETFs. 

4. Annuities and CDs: Annuities are one of the most secure options for guaranteed, regular income for people as per David Snavley. They are low-risk financial products that an insurance company offers to people after retirement when they invest in it. In exchange for this insurance product, they pay out income to you at regular intervals. You can start getting payments immediately after you have them paid out at a later date.

Certificates of deposit (CDs) are another way to invest and make retirement money. These low-risk accounts are offered by banks and credit unions, and you are only going to get money after the maturity date. You can ensure that they pay one after another If you invest in CDs.

5. Pension: Pensions are the best benefit plans that generate regular income for employees after they retire. How much of the pension amount is paid out to the employees depends on the employer and the amount of time you work in the company. In general, the pension amount is 50% to 85% of your working income in retirement.  

6. Bonds: Bonds are investment options that could bring regular income for you after retirement. These financial products are like CDS with low-risk and fixed investments. With a bond, you’re loaning money to the government in exchange for regular interest payments.
Preparing for Retirement is necessary for people to enjoy that phase of their life. However, an expert financial advisor like David Snavley can help you determine what is the best product for you for retirement income. But takes a good amount of time to evaluate multiple factors into account, like taxes and inflation.

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7 Key Questions To Ask Your Financial Advisor

Are you unsure about how to manage your portfolio or don’t know what to do with a large inheritance? If this is the case with you, then using the services of a financial advisor like David Snavely is the smartest idea you can ever come up with. However, let me warn you that not all financial advisors are created equal; some might want to scam you to fill their own pockets. As this line of work operates on commission-based sales of financial products, their primary duty is to give you the best advice for your investments and retirement planning.

Although it is best for you to rely on your financial advisor for their expertise, it remains essential to ask questions and understand the whole process. Every investor needs to know about what your advisor does, how they do it, and what strategies they are trying to employ. 

Here are 7 questions you should consider asking your financial advisors this year to ensure you get the best advice.

These questions will help you make a decision about hiring a financial adviser and gather information about who will best serve your needs:

1. What Services Do You Offer?

It is important to understand what services they offer and their specific areas of expertise before working with a financial advisor. If you need their financial advice in various financial areas, ask if they offer investment management, retirement planning, wealth management, tax advice, and estate planning services.

2. What Is Your Investing Philosophy?

Every financial advisor uses a different approach to how they establish a strategy in place for money investment. Their investing philosophy sets the standards and principles to create that strategic plan. They’ll be able to easily communicate how they intend to help you achieve your financial goals If your financial advisor’s investing philosophy is well-defined.

3. How Much Do You Charge?

As per David Snavley, It is a good idea to know what your costs will be upfront because you do not want to be overcharged when investing money for savings. Some of the financial advisors work on a fixed while others work on a commission basis. Learning your advisor’s cost structure helps you evaluate the benefit of their service against what you are paying. 

4. What Are Your Qualifications?

Learning about the financial advisor’s qualifications is as important as finding out about the job candidate’s qualifications. Learn about all the mandatory certificates your advisor holds. Many advisors only hold minimal courses; you want to avoid these underqualified advisors, as the financial industry is changing really fast. And you need someone most adaptable to the latest happenings in the sector.

5. Do You Have a Fiduciary Duty to Me?

Confirm your financial advisor if they have a fiduciary duty to you or not. And most importantly request every declaration in writing. If you have everything in writing, then your advisor is legally and ethically bound to put your best interests ahead, not theirs. It’s important to understand what their obligations are to you clearly.

6. Which Custodian Do You Use?

A custodian holds and protects your investments, such as stocks, bonds, mutual funds, and other securities. So, it is good that your financial advisor uses a credible custodian to avoid counterparty risk says David Snavley. It is also important to inquire about the custodian’s fee structure, security processes, and technology capabilities to make your case more strong.

7. How Often Do I Need to Review and Update My Financial Plan?

Regularly reviewing and updating your financial plan is crucial to match your financial goals and ever-evolving market conditions. What may have been suitable for your finances 12 months ago may not be profitable with your current situation. It is well established fact to meet your advisor at regular intervals, and If you can’t meet your financial advisor in person, schedule virtual meetings to stay in contact.

Hiring a financial advisor can assist in managing your investment portfolio. However, It’s important to ask probing questions before you enter any contract with your financial advisor.

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Is a Fixed-Index Annuity Right for Me?

Yeah, annuities. If we call it the most complex investment out there it will not be completely false. A dazzling variety of these exist, but in what you are most likely to be interested in fixed or fixed-index annuity. Here we’ll discuss what exactly a fixed-index annuity is and how you can evaluate if a fixed-index annuity is right for your needs.

What is a fixed-index annuity?

We are happy you asked this important question—but before we explain a fixed-index annuity to you, we will first explain what an annuity even is. 

As per financial advisor David Snavely, an annuity is a kind of insurance product that offers investors a stream of income. You need to pay some money upfront which is then invested and later paid out as per the pre-agreed amount and time frame during the “payout” period.

All annuities have mainly two components: the principal you pay and the returns you get on the same. Depending on the annuity type you set up, you can fund it with pre-tax (qualified annuities) or post-tax (non-qualified annuities) dollars. Whatever option you choose, the earnings or interest on an annuity grows tax-free until the money is withdrawn.

Types of annuities:

A fixed annuity is the simplest of them with the lowest risk and good growth potential. With these annuities, the insurance company takes money from you and makes it grow per the predetermined interest rate stated on the contract. This interest rate is typically higher than the national interest rate. After all, if they didn’t provide it, there’d be no reason to put your funds into an annuity instead of a bank.

In contrast, a variable annuity has the most risk among all types of annuity, Your funds are tied to the performance of financial markets.  Your insurance company invests your money into various stocks, bonds, and mutual funds called sub accounts on your behalf. While you do enjoy the option of choosing the investments, you could lose all your money including your principal amount if they perform poorly.

An index annuity combines the elements of both of the above-mentioned annuities. Rather than investing directly in the stock market, your money is tied to the stock index as a whole: meaning the better the market performs, the higher your returns. A large benefit of this annuity is that you can only lose a small yet specified amount, as these products come with a floor reflected in your contract.

So, what is a fixed-index annuity, then? As you can derive from its name, this annuity combines features of both fixed and index annuities. David Alan Snavely explains that In these annuities, some of your money is invested in funds tied to one or more indexes while the rest is invested into a fixed-rate fund. You will typically enjoy the opportunity to choose the portion of your money that will be split between the two. These money-earning approaches are referred to as crediting strategies.

Are annuities a good investment?

Whether annuities are a sound investment depends on individual circumstances, as they may not be suitable for everyone. Annuities are designed to offer a consistent income stream, typically during retirement. They can be considered a prudent choice for individuals who fall into the following categories:

  • Conservative investors seek a reliable source of guaranteed income for their lifetime.
  • Concerned about the risk of running out of funds during retirement.
  • Interested in safeguarding their legacy; including a death rider in the annuity allows the passing of assets to named beneficiaries without probate.
  • Have maximized contributions to other retirement vehicles but still wish to continue funding their retirement.

If you identify with any of these criteria, it is advisable to further explore whether a fixed-index annuity aligns with your financial goals.
Investing is always finding the right balance between risk and reward, and fixed-index annuities are no different. However, as annuities are complex financial products available to investors, it’s important to speak with a financial advisor like David Snavely who can objectively evaluate if an annuity is right for you.

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Keiser University: A Comprehensive Overview of Academic Excellence

Keiser University, led by the visionary Chancellor Arthur Keiser, is an incredible institution that epitomizes academic excellence. With a rich history and a commitment to student success, Keiser University has established itself as a top-ranked university. The university’s dedication to addressing workforce shortages in Florida is commendable, as it has added academic programs to meet the state’s needs. This commitment to providing relevant and industry-focused education has earned Keiser University high rankings in the U.S. News & World Report Best Graduate School rankings.

Under Arthur Keiser’s leadership, Keiser University has continued to thrive. This dedication to maintaining academic excellence has been acknowledged by the South Florida Business Journal, which named Arthur Keiser one of the Power Leaders in Education.

Keiser University’s impact extends beyond its physical campuses in Florida. It offers over 100 on-campus and online degrees as a private, non-profit university. Keiser University stands as a beacon of academic excellence under the leadership of Arthur Keiser. With a rich history, high rankings in various disciplines, and a commitment to student success, the university significantly impacts Florida and beyond. Whether on-campus or online, Keiser University offers a wide range of programs that prepare students for success in their chosen fields.

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