It’s time to go back to school and for many teachers, that means it’s time to revisit their retirement benefits. Teachers diversify their financial portfolios or ask DeWitt & Dunn Financial Services to review their 403bs to make sure that they are getting the most out of their retirement plan. Like all employee provided benefits, it can be helpful to get a second opinion. There may be options you haven’t considered available to you. Cathy and Steve talked through some of these options on DeWitt & Dunn Financial Services Radio.
A lot of teachers are going back to school prepared because they were able to call our office sit down and put together a plan for their retirement and their options in regards to their 403Bs. All of the teachers that are going back to work are going to be connected with a new 403b specialist at their school. They might be given a short meeting to make an investment decision in the cafeteria or in the front office.
You are allowed to think over and consider your options. You can call us and find out how our certified 403b financial planner can help. You’ve got lots of different strategies and plans available to you and believe it or not, taking some time to come in, visit with us and compare investment opportunities can start you off on the right foot.
It can really help to take a look at all your different options. In fact, some teachers are able to receive a 12% bonus on all funds that are deposited into their 403B, so the opportunity is really significant for your future retirement plan. You can use that bonus to add to your future income.
DeWitt & Dunn Financial Services is a full-service firm, We offer wealth management, we do annuities, long- term care life insurance, you name it. We also do alternative investments, so when you’re hearing our radio show we don’t have one thing, one investment, one solution, one product or just annuities. We take a look at everything. We look at your asset allocation and encourage our clients to avoid putting all of their investments into one strategy.
Diversification is key. Especially if you’re an accredited investor or you’re looking for cash flow or if your risk-adverse, is key. Consider looking at some annuities and how you can have growth linked to the market, but keep your principle guaranteed. Here’s an example of a recent client, a 57 year old female wanted to take a portion of her IRA and create a guaranteed lifetime income stream. She wants to wait 10 years before receiving that lifetime income stream. This strategy, with a 7% bonus and 7% compounded growth rate on the income side, was the best fit her. She starting off with $650,000 and received a $45,500 bonus on day one (which again represents 7%). At age 67, the compounded growth of 7%, will bring that total value of her annuity to a little over 1.3 million dollars for her to use as future income. That income stream is a little over 71,000 guaranteed for the rest of her life. She even has the option to receive additional long-term care benefits.
One of the reasons people are really starting to look at this solution is because the market is in the longest Bull Run in history, so the ability to diversify a portion of your portfolio into a guaranteed lifetime income stream is a really smart thing to do given we are at in in our economy. You can hedge your risk for future market changes now. One way to help visualize your future financial plans is by getting an income illustration. We love company compliant illustrations and would be happy to help you set one up. Simply fill out our income plan request form or give us a call at 972-473-4700.