Experts estimate that in retirement, people typically require about 80% of their pre-retirement income. But everyone has different circumstances and expectations, and the best answer comes down to personal decisions.

To determine your retirement income needs, LBA first helps guide you through a review of expenses, and can ultimately provide a detailed plan of action to ensure you are generating enough income to match and exceed those expenses.
Some of the questions we review and discuss with you include:

• What amount will allow you to “continue your current lifestyle”?
• What are your expenses now and how might they differ when you retire?

• For example, if you are saving 10% of your income while working, you likely won’t continue that in retirement
• Income taxes will likely diminish.
• Housing expenses may change as many folks plan to downsize…. or maybe that mortgage will be finally paid off.
• On the other hand, some might be ready for that beach house they have always dreamed about. For others, more leisure time will be spent traveling, or maybe it’s time for the sports car or new boat! It gets personal.
• A great exercise is to look at 6 months of expenses before you retire and carefully consider those that will change.

Once you have a reasonable handle on your expenses in retirement it’s time to look at your expected income stream. Assuming retirement for you means an end to your salary, revenue streams might include:

• Pensions – Let LBA help you make the right pension election
• Social Security – There are literally dozens of strategies available to individuals and couples. LBA will help you maximize your Social Security income
• Retirement accounts and annuities
• Rental income
• Reverse mortgage

Next, we consider whether your income streams are “fixed” or will they grow to keep up with inflation. Adequate income streams today may come up short in just a few years if they don’t include some type of “COLA” (cost of living adjustment).

Ultimately, we look to ensure that your income streams will provide for all of your expected expenses, and that you do not outlive your money.

For those with a retirement pension from their employer or union, it is very important to select the right pension option. The usually irreversible decision should be based on your lifestyle, your health, and your budget. LBA works with couples and individuals to help them select the pension option that best fits their unique retirement needs.

“Pension Maximization” is a method used to maximize your pension benefit whether or not you personally are still around to collect it. Individuals typically have multiple options available to them when it is time to collect a pension. A life-only option typically provides the largest payout but ends when the pensioner dies. A joint-and-survivor payout option offers a lower payout but the payout continues as long as the spouse is alive. “Pension Maximization” refers to a strategy where the pensioner takes the largest payout, on their life only, then uses some of the payout differential to purchase life insurance on themselves. If the pensioner dies the income ends but the life insurance payout will go to the spouse. If the spouse dies first the pensioner can cancel the life insurance and continue the full payout on their life only.

In summary, local, Labor-friendly assistance is available so don’t attempt to go it alone. Opportunities may be lost, irreversible decisions may be made, and your family may be forever impacted as a result of any missteps.

Asset protected investing is all about taking “chips” off the table in good times, so that you still can walk away from the table a winner in less favorable times. LBA helps individuals and families achieve strong stable returns on their investments using a variety of tools, one of which is annuities.

Annuities are like automobiles – no two are alike, no two offer the same features, and they can be structured to meet different needs. Some families enjoy driving around in a convertible, while others prefer a truck or SUV. Selecting the right annuity should be based on the individual’s needs and goals, once they are defined, LBA can help secure the best in class “vehicle”.

Who Buys Annuities?

Annuities are appropriate financial products for individuals seeking stable, guaranteed retirement income. Annuities generally trade a liquid lump sum for a guaranteed series of cash flows, which are guaranteed for life, ensuring you do not out-live your assets.

Annuities are flexible. They are generally categorized as either fixed or variable. They are sometimes criticized as not being liquid, but that is a misnomer as most allow owners access to annual withdrawals. Annuities can be long or short term, again allowing the investor to find their comfort level.

LBA has access to hundreds of annuity variations, and focuses on top-rated firms and products to deliver you the best of the best results.

A death in the family is not only emotionally devastating, it can also take a tremendous toll on the financial security of a family. The unexpected loss of income can make paying the mortgage or providing for a child's college education impossible, or at the very least much more difficult.
Those who buy life insurance are actually buying “peace of mind”. It is comforting to know that your family will not be financially devastated if you pass. Life insurance provides money directly to your beneficiaries who can use the money as they see fit, including:

• Replacing lost income
• Covering basic living expenses
• Paying household debts, estate taxes and funeral expenses
• Funding a child’s education
• Supplementing retirement savings

Life insurance comes in two main types – term and permanent.
Term life insurance pays a specific lump sum to your loved ones for a specified period of time – usually from one to 20 years. If you stop paying premiums, the insurance stops. Term policies pay benefits if you die during the period covered by the policy, but they do not build cash value, and they expire after the “term” of the contract. They are more affordable, and used primarily to cover specific financial responsibilities like a mortgage.

Permanent life insurance policies do not expire. They are intended to protect your loved ones permanently, provided you pay your premiums. Some permanent life insurance policies accumulate cash value. That means, the value of the policy will grow each year, tax-deferred, until it matches the face value of the policy. The cash can generally be accessed via loans or withdrawals, and can be used for a variety of purposes. Consider a permanent insurance policy if you are seeking:

• Protection for life
• Payments that stay the same each year
• To put additional money into the policy on a tax-favored basis
• Cash value you can use while you are living

Unfortunately, many people do not fully understand nor appreciate the value and benefits that life insurance can represent as part of a retirement plan. Having the correct type of life insurance and the appropriate amount of life insurance coverage in retirement will accomplish multiple tasks. It can help protect your income, provide tax-free cash flow, help manage taxes, provide peace of mind to families, and even improve the total returns in a portfolio.

Protect Your Income in Retirement. You can't invest your way out of an untimely death. When one spouse passes away in retirement, the surviving spouse often struggles to meet their income needs. At a minimum, one of the two Social Security benefits the couple was receiving will go away. For many couples, life insurance can be used to ensure that there is enough money to replace any lost Social Security or other retirement income. In this way, the surviving spouse is able to maintain his or her current standard of living throughout retirement.

Long-term care should be a consideration as people are living longer. As we age, many times we need help with everyday activities of daily living or require supervision due to memory problems. Statistics now say that 25% of 65-year-olds will live to be over 90, and about 70% of individuals over age 65 will require at least some type of long-term care during their lifetime.

Long-term care insurance generally covers home care, assisted living, adult daycare, respite care, hospice care, nursing home care, and Alzheimer’s care. If home care coverage is purchased, long-term care insurance can pay for home care, often from the first day it is needed. It will pay for a visiting or live-in care-giver, companion, housekeeper, therapist or private-duty nursing up to seven days a week, 24 hours a day (up to the policy benefit maximum). Experts suggest shopping by age 50 as part of an overall retirement plan to protect assets from the high costs and burdens of extended health care. Without long-term care insurance, the cost of providing these services may quickly deplete the savings of the individual and/or their family.

In the United States, Medicaid will provide long-term care services for the poor or those who spend-down assets because of care and exhaust their assets. In most states, you must spend down to $2000. If there is a living spouse/partner they may keep an additional amount.

Combination or Hybrid policies are gaining in popularity. These policies ensure LTC coverage if you need it during your lifetime, and if unused, beneficiaries may collect a tax-free life insurance death benefit. These option definitely deserve a consideration.