According to Katie Libbe of Allianz Life, “Hands down, Americans are saying their retirement saving strategy must include products and choices that offer guarantees, even though equity markets have performed well this year,”
Of the 791 adults who were surveyed, 78 percent said they preferred financial products with guarantees over products with higher growth potential. And 39% said if they had extra cash to invest they would buy products that have some level of protection and growth potential.
When asked about the most important way to prepare five to 10 years before retiring, 41 percent said putting some money into a guaranteed income product was the best course of action. Only 12 percent said the best strategy was to put money into equities.
At Thames Financial & Insurance Service we see these preferences first hand with our own clients. People want guarantees and in particular they want guaranteed lifetime income. We believe that establishing enough guaranteed income to cover most or all of your essential living expenses is a good strategy; but we also believe there is a time and place for prudent risk. The challenge is deciding when and how much.
About the Author: C. Thomas Thames is a Certified Financial Planner™ professional and registered tax preparer with offices in Folsom and Elk Grove, California. Tom holds an MBA degree from Santa Clara University and has over 40 years experience in the financial services industry. He also holds the Chartered Financial Consultant and Chartered Life Underwriter designations.