When looking at retirement, people think their goal is to amass a certain amount of money and that’s it, they’re done.
Now, while having a bunch of money is definitely a good thing, it’s really about what you do with it that matters. Investment Advisor Representative with Symphony Financial Group Stephen Smith wants to show you how to make your retirement funds work for you.
Unfortunately, he says some of the strategies that people have been using for years, such as asset allocation or modern portfolio theory, have both failed due to stock market volatility. With asset allocation, all of your money is tied together so if you loose it, that's it.
Stephen suggests a strategy called income allocation. This is a strategy where a portion of your money is used to generate an income that you can’t outlive using annuities. Some people have a negative view of annuities, and sometimes rightly so. But there are good ones out there that can do what nothing else can do in the financial universe.
Annuities are simply a tool that you can use to achieve your retirement goals. They’re structured like a pension and you will receive a paycheck, month in month out, for as long as you live. There are certain limitations and they aren’t designed to out-perform the stock market growth wise. Each individual’s financial situation is different.
You need to sit down with a financial advisor who can look at your situation and structure a financial plan that works toward your goals and not their business model. Be sure to check out Symphony Financial Group if you're looking to maximize and put to work that retirement portfolio.