Here’s Why Your Retirement Plan Needs a “Stress Test”

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Any references to protection benefit or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company .An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information. This is not a recommendation to surrender or otherwise purchase an insurance product. You should review your specific policy and financial situation with your advisor.
You wouldn’t buy a car without testing its safety—so why retire without stress testing your financial plan? In this week's Ascend360™ Insider, Bill Smith, RICP®, MRFC®,CEO and Founder of W.A. Smith Financial Group, breaks down how a retirement stress test helps you prepare for the unexpected, from rising taxes to market downturns. Discover how to identify weaknesses in your plan now, so you don’t face costly surprises later.
