Retirement Planning

Diversifying Retirement Income Sources

You’ve been working hard most of your life, with the end goal of retiring and enjoying life at your own pace. What you do now, in your pre-retirement years, is what can help make that dream a reality.

If you haven’t started planning for retirement, start now. The earlier you plan for retirement and saving, the better prepared you will be to reach your goals. If you’ve already started planning and saving, hopefully you are on the right track. However, you most likely have invested in traditional retirement sources, such as 401(k)s and IRAs, which is a good start, but they may not be enough for you to maintain your standard of living in retirement. People today are living longer and therefore may not be able to rely on traditional retirement sources like pension plans, 401(k)s, or Social Security in the future. The S&P 500 Index historically experiences a down market approximately 3 out of every 10 years, which creates added risk if your retirement money is tied to the general market alone. So, what can you do to strengthen your investments and protect yourself from market fluctuations without depleting your retirement savings?

Permanent life insurance can provide supplemental income and isn’t tied to the market, making it a great addition to your overall financial plan. If there’s a downturn in the market, you can make withdrawals from your life insurance until the market hopefully recovers to mitigate your risks. Life insurance’s primary purpose is, of course, the death benefit, which is an added safety net for your family. By diversifying your portfolio, you’ll be able to protect yourself and your family from many of life’s unexpected turns.

View the short motion graphic below to learn more about the benefits of diversifying your retirement income sources, or contact a Penn Mutual financial professional today to make sure you’re on the right track.

Diversification does not guarantee a profit nor eliminate the possibility for losses.  The S & P 500 is a unmanaged index and cannot be invested in directly. Past performance is not indicative of future returns.  All Investing involves risk – including the potential for losses.

For permanent insurance, any and all guarantees are based on the claims paying ability of the issuer. Insurance policy loans and withdrawals will reduce the policy cash value and death benefit. Additional premium payments may be required to maintain coverage.

This post is for informational purposes only and should not be considered as specific financial, legal or tax advice. Depending on your individual circumstances, the strategies discussed in this presentation may not be appropriate for you or your client’s situation. The information in this material is not intended as tax or legal advice. Always consult your legal or tax professionals for specific information regarding your individual situation.


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