Identifying Elements of a Well-Rounded Strategy

A well-rounded strategy can go a long way toward preparing your plan in the face of unpredictability.

Understanding the following key elements of a sound financial strategy, with the help of a financial professional, can help shape a plan that aligns with your goals for saving, investing and insuring your financial future.

Saving, Investing, and Income

As you create your financial strategy, you’ll want to consider two major phases of your financial life. In the first phase, you earn, save, and invest toward retirement. Once you retire, the second phase begins. In the second phase, you cover your life expenses with the money you’ve saved, and with steady streams of income. Retirement income streams can include money you receive from an employer, Social Security, rental properties, investments, and more. 

Balancing Protection and Growth

By measuring your risk tolerance, you can work with your financial professional to identify the strategies that align with your preference for balancing protection and growth. 

Tax-Efficient Strategies

For many people, saving on taxes is an important financial consideration — particularly during the accumulation phase. As you explore your investing options, consider talking to your financial professional about ways to defer taxes to later, and potentially, less tax intensive, stages in life.

Income in Retirement

“Income Planning” doesn’t stop when you retire. With growing concerns about the stability of social security and the decline of defined benefit plans, it’s become increasingly important to be strategic about accessing income from your assets in a way that seeks to protect you for the long term.

What is an Annuity?

An annuity is a long-term, tax-deferred vehicle designed for retirement. Variable annuities involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.