August 7th, 2019
Captain's Log


Summer's unofficially coming to a close now that we're getting the kids and grandkids sent back to school. It's a busy time of year trying to pack in one more vacation and get everybody geared up for the coming school year. As preoccupied as everyone is, it is still important to be sure you're not letting other distractions get in the way of ensuring you have a proper retirement plan. 

This month we've included two articles that highlight some really good information about what types of tools you should be using in your retirement plan. The Wealth Report this month focuses on some recent changes to retirement plans that the House of Representatives and Senate are considering, which includes offering more annuities within employer-sponsored plans. The other is a paper on a study that was done that shows how using annuities to provide guaranteed lifetime income can drastically reduce both longevity risk and market risk to give you better odds of succeeding in retirement. 

Anybody who has met with us or read our articles in the past knows that we're big proponents of (properly) using annuities as part of an overall retirement plan, so it's nice to see that the general consensus is coming more into alignment with that idea. In our opinion, it's just common sense to use annuities to provide at least a portion of your retirement income, because that's what annuities are designed to do. Annuities are what most pensions are paid with and most people love having a pension, so why not create your own with an annuity?

If  there is anything we can assist you with, then just let us know.  And, as always, remember -  The purpose of the money dictates where you put it.  

Until Next Month,
Jim's signature
  James D. Stillman

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The Wealth Report:

Retirement Reform:
Will the Proposed Changes Affect You?

In May, the House of Representatives passed the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) with a remarkable bipartisan majority (417-3). One of the primary goals of the SECURE Act is to help current retirement plan owners maximize their savings efforts for long-term retirement income. 

Some of the features of the SECURE Act include:

*Eliminating the maximum contribution age (currently 70.5) for various retirement plans

*Delaying the sage when participants must begin taking required minimum distributions (RMDs) from tax-advantaged retirement accounts from 70.5 to 72

*Enabling more annuity options for retirement accounts

*Requiring employer plans to provide participants an annual calculation of how much income their account's lump sum balance could generate

*Requiring plan sponsors to allow long-term, part-time workers to participate in the company retirement plan

*Requiring that retirement account balances be distributed as taxable income to their beneficiaries within 10 years of the IRA owner's death (with certain exclusions)

Special Report:

Protected Lifetime Income:
A New Formula and Category for Today's
Modern Retirement Plan

Retirees face a variety of risks after they exit the labor force and are no longer funding their living expenses from their regular wages. They must find a way to convert their financial resources into a stream of income and spending power that will last the remainder of their lives. To accomplish this, they must manage both longevity risk (the risk of outliving their retirement income) and market risk (the risk of losing income due to market downturns), among other challenges. But, to date, they have had to deal with conflicting advice about how to best accomplish this task. 

To better cut through the conflicting views about retirement income planning, this paper uses a straight forward illustration to show how protected lifetime income from an annuity - that has an optional protected lifetime income benefit - compares with other retirement strategies. An annuity with such an optional benefit may help mitigate both longevity risk and market risk by providing a protected lifetime income advantage, which also increases spending power.

All content is intended for informational purposes only. Any guarantees are for insured products only and are dependent on the claims paying abilities of the insurer.  All investments carry some risk and you should be advised by your personal financial advisor before implementing any strategies discussed, as they are not suitable for everyone. James D. Stillman is an Investment Advisor Representative of JDS Wealth Management Corporation and AE Wealth Management. 

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