FAQ

What is retirement investing?

Retirement investing usually involves creating a plan to grow your money by setting up various accounts that are tax-deferred or tax-free prior to retirement.

What is a retirement plan?

A retirement plan is a strategy for setting aside money so you have funds that can be spent after you retire. Traditional retirement plans may include pensions, Social Security, 401(k) and IRA accounts, and annuities.

How much should I save for retirement?

How much you should save depends on your desired lifestyle during your retirement years. Different types of retirement accounts offer different ways to save. We will work with you to help you understand how much money you will need to achieve your retirement goals.

When should I start saving for retirement?

Ideally, saving for your retirement should begin as early as possible. Why? The more you plan and save, the greater the opportunity to meet retirement goals. If you're getting a late start on retirement planning, don't worry—we’ve helped many late starters plan for the near future.

How long do I need to work before I'm eligible to receive Social Security retirement benefits?

To be eligible for Social Security retirement benefits, you need to have worked for at least 10 years.

At what age can I begin receiving my retirement benefits?

Social Security retirement benefits begin at 62 years of age. If you retire before the age of 62, your Social Security benefits will be delayed.

What does ''vested'' mean?

The term "vested” indicates eligibility to receive your retirement benefits from a pension plan or an employer’s retirement plan.

What is a qualified retirement plan?

A qualified retirement plan is a pension, profit-sharing, or qualified savings plan that is established by an employer for the benefit of the employees. A qualified retirement plan must conform to rules established by the IRS.

Why should I use an investment plan when planning for retirement?

Investment comes with risk, and one way to lower that risk is to have a retirement investment plan that combines a variety of investment instruments, including stocks, bonds, cash equivalents, and annuities. As well, an investment plan can help you to save the money you need to retire in a shorter amount of time than without one.

What is an annuity?

Annuities are products offered by insurance companies. At times, these products may be a lower-risk option for retirement. Annuities are paid in varying intervals—usually quarterly, annually, or in a lump sum.

How do annuities help my retirement?

Deferred annuities are retirement accounts that are repaid in increments that are guaranteed1for a set period of time. These funds are the money you receive after you retire. Many investors see these as a beneficial component to their retirement plans because they often present a lower-risk option for investing.
_{1Guarantees are based on the claims paying ability of the issuing insurance company.}

What are joint and survivor annuities?

Joint annuities can pay sums to a married couple throughout their lifetime--even if one spouse dies. Survivor annuities allow the annuity purchaser to designate a survivor to whom to transfer the accumulated wealth of the annuity.

What is an employer-sponsored retirement plan?

Employer-sponsored retirement plans are tax-favored plans sponsored by an employer and include 401(k) plans, 403(b) plans, simplified employee pension plans (SIMPLE IRA), and profit-sharing plans.

What is a 401(k) plan?

A 401(k) plan is an employer-sponsored retirement plan that allows the employee to set aside tax-deferred income for his/her retirement. While many employers match a percentage of each employee’s contribution to the plan, there is no requirement for them to do so.

What is a 403(b) plan?

A 403(b) plan is an employer-sponsored retirement plan offered by tax-exempt entities such as churches, charities, and schools that allows the employee to set aside tax-deferred income for his/her retirement. While many employers match a percentage of each employee’s contribution to the plan, there is no requirement for them to do so.

What is an IRA?

IRA stands for Individual Retirement Arrangement. This is a tax-deferred retirement account that permits an individual to set aside earnings each year. Earnings are tax-deferred until withdrawals begin at the age of 59 ½ or later. Early withdrawals are permitted but incur a 10% penalty. The allowable amount that can be invested each year is dependent on the age of the investor.

What is a defined benefit plan?

A defined benefit is a retirement plan in which an employee who is retiring receives a guaranteed retirement amount, usually paid out in increments.

What is fixed income?

Fixed income is income that pays a specific interest rate, such as certificate accounts, Social Security benefits, pension benefits, some annuities, and most bonds.