Comparing S2I to Traditional Retirement Planning
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| Objective | Attempt to Manage Retirement Savings So That They Don’t Run Out |
Create Dependable, Spendable Income Guaranteed for Life |
| Strategy to Meet or Exceed Objectives |
Use Fund Selection and Asset Allocation to Improve Returns and Tax Management to Minimize Current Taxes |
Manage Success Factors You Control - Fees, Taxes, Asset Diversification, and Social Security Claiming Decision |
| Tax Strategy | Manage Taxes through Selection of Securities, and Buy/Sell Allocations. Typically, No Consideration of No-Load Variable Annuities |
Invest Most Retirement Savings in Tax Deferred Accounts. Use No-Load Variable Annuities for Personal Retirement Savings |
| Tax Reporting | Pay Taxes on Personal Savings Investment Earnings and on Withdrawals from Other Savings |
Pay Taxes Only on Retirement Income When Received |
| Retirement Income Sources Other Than Social Security or Any Pension |
Variable Income from Drawdown of Principal, Plus or Minus Current Investment Earnings on Retirement Savings |
Guaranteed Income from Fixed Payout Annuities or Zero Coupon Treasuries that Does Not Depend on Current Market Results |
| Longevity Management | Conservative Withdrawals of Principal and Investment Earnings to Make Savings Last Longer |
Purchase of Payout Annuity to Provide Lifetime Income |
| Social Security Claiming Decision |
Minor Part of Strategy (if at all) |
Key Part of Overall Strategy |
| How Payout Annuities are Purchased |
One-time Purchase (if at all) |
Staged Purchases Over Time to Meet Personal Circumstances and Economic Conditions |
| Advisory Fees as % of Retirement Savings |
Generally Higher Because of More Complex Approach to Tax and Income Management |
Generally Lower Due to Simplified Approach to Tax and Income Management |
| Situation at Advanced Age |
Withdrawals from Retirement Savings Must Be Managed |
Retirement Income is Guaranteed For Life |