Annuities… you may have heard a thing or two about them. 

If your retirement is right around the corner, you probably have some questions centered around not only what it will look like physically, but also fiscally. Depending on your goals and 

, there could be multiple variables and underlying factors that you want to address in your retirement plan, you’re just not sure how to.  

No one intends to spend their retirement years concerned about income, but unfortunately that’s the reality of 

 With the aftermath of COVID-19 also playing an integral role in the 

, it’s also no secret that market volatility can upend even the most concrete of retirement plans. The latest study? 

 discovered that 1 out of every 3 Americans who were planning to retire, 

has had to push their timeline back due to COVID-19

, and that number only continues to grow.

 of a sound retirement plan. If we look only to the markets to guarantee our income, some years, we may stay ahead of the curve, while other years, 

markets may prove to not provide the income needed. 

reliable income stream and protect your principal

, while still riding the highs of the markets?

 you may have heard a thing or two about them. 

Financial professionals love talking about them, and consumers 

 With so much information out there, let’s get the facts straight about this financial product, and how it can be used to provide income in your retirement.

Before diving into how annuities work, let’s cover the basics.

An annuity is a contract you purchase from an insurance company. For the 

 until withdrawn. When you’re ready to receive income, an annuity offers a variety of guaranteed payout options through a process known as “

The array of annuity contracts on the market today include 

 are insurance products which protect against loss and generally offer a fixed

 for a period of time, and may change periodically as outlined in the annuity contract language. The insurance company invests its funds conservatively, intending to earn more than the declared 

The annuity owner earns interest on the investment; the insurance company profits from the "

" The spread is the difference between the carriers' earned interest on their investment and the declared interest crediting rate earned by the 

. Fixed annuities carry the least amount of risk of all annuities.

 allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of those investments. These annuities can be attractive to investors who want to pursue 

, since it is directly invested into the stock market. Keep in mind that although exposure to the market and its volatility can cause significant returns, it also 

 than other annuities, due to their higher fees and maintenance charges. Policyholders should carefully assess their 

and investment goals before purchasing a variable annuity.

Indexed annuities blend some of the benefits of a fixed annuity and some of the variable annuity. An indexed annuity offers the same 

 as a fixed annuity, with a potential for increase in value based on the performance of a linked 

Unlike a variable annuity, the principal and earned interest are not exposed to 

 In other words, when the index goes down your account value does not decrease as a result. This is called the interest rate “

,” which is what helps limit losses. The caveat is that although an indexed annuity usually guarantees a minimum return, it “

” the upper limit of interest from the index performance. Indexed annuities offer the opportunity for growth potential, while still offering 

Here’s an example of the principal protection offered: 

Let’s compare investing $100k directly in the 

 while at the same time putting $100k into an indexed annuity. Back in 2008, we all remember that the 

, which means your $100k invested into the stock market would’ve taken a huge hit. On the contrary, if we looked at the indexed annuity during the same time, you wouldn’t have suffered a single loss. This is due to the interest rate floor in your policy that limits your losses.

Over the next 30 years, the number of Americans 90 and above is expected to triple, and other than Social Security, 

 other than their self-funded retirement savings. Living longer doesn’t necessarily mean living better either. As your age increases, so does your 

level of risk for contracting diseases and disabling conditions

, as well as your number of medical expenses.

40% of Americans have less than $5,000 in retirement savings.

declining number of employer-sponsored pensions

, and the idea of financially supporting yourself in retirement can seem virtually impossible.

Your 401(k)s and IRAs can help provide income in retirement, but 

; and with people living increasingly longer, there’s value in knowing that you won’t run out of money. 

Outside of preservation and income, annuities can also offer substantial benefits. Some annuities offer enhanced 

 to protect your loved ones, while others offer 

 that may give you access to principal without a penalty.

If you have a pre-existing condition that makes you unable to qualify for a 

, or are afraid of the financial burden associated with it, an annuity could be a way to address those concerns. Some annuities have 

long-term care provisions that will help double your income payments

for a period of time to help offset additional expenses incurred because of a long-term care need. The best part? You generally don’t have to 

Build your retirement with investments that matter

, our goal is to help you enjoy your retirement with confidence, not worrying about whether you have enough money to enjoy it. Our certified fiduciaries and experienced investment advisors have decades of combined experience helping people find answers to difficult financial questions. 

Sit down with a Fullerton Financial Advisor today

 to discover if you are on the right track for your retirement goals. 

We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. When you 

schedule a call with Fullerton Financial Planning

, we’ll help you decide if an annuity fits your specific plan and lifestyle.

Don’t leave your financial future to chance. Let us help you create a personalized retirement plan so you can enjoy the retirement you’ve worked so long and hard for.

 What’s the point of an annuity? 

our primary goal throughout your working years is to support yourself, your family, and to create a lifestyle that also leaves a legacy. So, how is it that almost 

70% of people don’t have even so much as a will?

 Many of us haven’t planned for transitioning our hard-earned wealth to others after we pass. While a financial plan sets a path for our retirement years, not having an estate plan is like letting all that work flounder.

sets a guide for how the wealth you built can continue to grow

 and support your family after your death. It’s possible many of us imagine living until a ripe old age, but sadly, that’s not always the case. A will is a small part of an overall estate plan, but it’s one of the most valuable.

What Happens if You Don’t Have an Estate Plan?

If you don’t have an estate plan in place, there are a few ways things may go. Your dependents are left guessing on a variety of issues like what, how, and when they might inherit money or property, how they’ll pay for your funeral expenses, debts, and bills, and how you would have wanted everything to play out. Grief is a powerful emotion – even the National Mental Health Association has said that “

the loss of a loved one is life’s most stressful event

,” – no one wants to leave a financial headache to their grieving families.

If you die without a will, you’re referred to as having died 

. Without a will, you (most likely) did not name an executor and your estate will move to a probate court where a judge will appoint someone to be your 

, then surviving children. If you have a disagreeable family, this process may go on until an administrator is appointed. Because every state has their own laws governing estates, they also have laws as to who can serve as administrators. In Oklahoma, for instance, if you have no family or next of kin, it’s possible for 

your creditors or “any legal and competent person”

 to step in to administer your estate. For many of us, that’s a hard pass, but if you don’t have a plan, you don’t have a say.

An Estate Plan Will Help Your Financial Plans

An estate plan can protect you in that it gives 

 the ability to lay out your plans for your estate. You’re able to name an executor, and give financial and health powers of attorney so that even if you’re incapacitated, your wishes will be respected.

If you own property and have money in the bank, you would prefer it go to someone you designate, rather than someone you didn’t. Whether by will or trust, you can make sure your beneficiaries not only inherit what you wish, but that they’re able to be your estate's decision-maker, and protect their inheritance from outside intervention. Additionally, if something happens to you and your spouse, and you have minor or young adult children, an estate plan can designate their guardians, and potentially pay for future expenses.

 your beneficiary a sum of money, but it doesn’t necessarily lay out conditions or prohibit how they might spend it. Additionally, an 

 – from finance and health powers of attorney, to living and revocable trusts, personal property memorandums, as well as end of life care directives. Many of us change or create our wills after significant events scare us into the realization we need to have our estates prepared – 

the Covid-19 pandemic saw a veritable race

 to get documents in order – but none of us wants to weather a storm outside, we’d rather have spent the time to build a shelter.

Not every estate will need to make its way through probate court, but if it's complicated, your state may require it. With a plan in place, it could be (relatively) smooth sailing and fully distributed in a few months; without one, 

. Planning ahead keeps your family safe, your wealth managed, and if nothing else, keeps your overall financial plan in the best possible shape.

5. Help you and your beneficiaries save on taxes.

A will can make a lot of provisions, but it won’t necessarily save you on taxes. For that, an estate planner or certified financial planner, can help you figure out how to avoid certain taxes, pay less, move assets into trusts, and more so you don’t give away your wealth to taxes.

Navigate the Challenges of Estate Planning with Professionals

, our goal is to help you enjoy your retirement with confidence, not worrying about whether you have enough money to enjoy it.

 Our certified fiduciaries and experienced investment advisors have decades of combined experience helping people find answers to difficult financial questions. 

We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. Incorporating an estate plan into your overall retirement vision can be challenging tackling on your own, especially with such personal and complicated subjects. When you 

, we’ll help you develop an all-inclusive plan that checks all the boxes and lets you sleep better at night.

Don’t leave your financial future to chance.

 Let us help you create a personalized plan so you can enjoy the retirement you’ve worked so long and hard for.

 Estate Planning 101: Why Estate Plans Matter 

Estate planning can be an overwhelming process. It’s rife with deeply personal issues and designations that can be uncomfortable at best, and wildly divisive at worst. Planning your estate however, is an essential part of a comprehensive retirement plan and overlooking, or putting off addressing it will only make the situation more complicated.

You don’t want to leave your family with unanswered questions or chaos when it comes to your estate. Not having an estate plan leaves the division of your assets to the courts and to your state’s laws of intestacy. We want to remove the mystique of estate planning, answer some basic questions, and help you understand the untold benefits of estate planning. 

 we’re talking about everything that comprises your 

 - land you own, real estate, possessions, financial securities, cash, and any other assets you may own or have a 

 in. Additionally, it also delegates authority over any medical, financial and legal directives you may have if you become incapacitated. 

Estate planning refers to the management of your estate after you have passed away, and includes how and to whom your assets are distributed. One might believe that with all the movies and television shows built around inheritance, we might all understand how important it can be to have a plan for what happens to our material lives; however, 

 have even one estate planning document like a will or living trust. For those who have children under the age of 18, the number drops to 35%. If that’s you, what’s holding you back?

Maybe you think estate planning is only for the very wealthy – those with multiple properties and a jet, perhaps. 

Many of us don’t think our estates are large enough

 to warrant an estate plan, and we’re wrong. Just because you think a situation will work out fine – splitting your estate between your four children, for instance – doesn’t mean it will - especially if you’re not around to give direction. 

 estate ran into this exact issue when she passed in 2018. The legendary soul singer had a multi-million dollar estate at the time of her death, but no will officially filed with her attorneys, the general assumption being she had planned to split the estate evenly between her four sons. However, 

 two hand-written documents (one found in sofa cushions) seemingly invalidated that claim, and started an inter-family fight. Even as recently as March 2021, new evidence was presented 

 that laid out an entirely different plan than the two others.

For those who do consider an estate plan, they may feel that the time to establish one is when they’re older, well into retirement – but that’s far from ideal.

. Hsieh was a Harvard grad, and tech guru who founded his first company just after graduating from college, and later sold it to Microsoft for some $265 million. He retired in 2020 at 46, after generating a net worth totaling around 

. Mere months after retiring however, Hsieh died due to complications of injuries sustained in a house fire. He died 

, or, without a will. In the months after his death, his family stepped in to help sort through the issues, but in 2021, claims against the estate totaled some 

That may sound like an extreme scenario, but similar situations happen all the time. 

, a man was preceded in death by his wife, but because he had not updated his will after her death, when he passed, his estate went to his beneficiary’s (still his deceased wife) next of kin including a woman living in another country and his wife’s estranged daughter, both strangers to him.

When should you start the Estate Planning Process? 

 found that in 2021, 18 to 34 year-olds will be more likely to have a will than 35 to 54 year-olds, and middle- and older- aged adults are less likely to have a will now than they were just one year ago. The importance of this can not be overstated, this is the first time those demographics have been weighted toward youth, and some experts point to how seriously each demographic 

. But the best time to plan your estate? 

When you’re ready to start planning your estate, who comes to the table and where do you go? If you’ve already created a financial plan, an estate plan is part of that overall process so a certified financial planner is critical in the process.

For some, it may make sense to turn to an 

. These lawyers work in tandem with your financial planner, and are specifically dedicated to drafting living wills and mitigating any potential estate taxes (hopefully) long before your passing. Additionally, they can draft 

, sort through and manage complicated estates, and most importantly, make sure your plans for your estate will hold up in court.

, or the person who will administer your estate once you pass. Who you name as executor of your estate is, arguably, the most important person in the entire estate planning process. They can honor your wishes or destroy what you’ve built so, to choose wisely isn’t just sage advice, it’s everything. Sometimes this role is shared – it is common for parents to appoint one or several of their children as co-executors; it’s also common for estate attorneys to serve this role as well. Whomever you choose however, understand that this person will bear the burden of responsibility to execute your plan as you have laid out. 

What goes into creating an Estate Plan? 

It depends. If you’re creating a broad estate plan, it will require a fair amount of paperwork including all of your financials and tax documents. The more layered your estate is -- and that’s not necessarily a bad thing -- the more complicated an estate plan can be. Generally, there are four main parts, sometimes called “

This is the most common estate planning document, and lays out what you want to happen to your assets upon your death. We refer to this generally as a “document” but in the wake of Covid-19 pandemic (in which there was a significant uptick in those interested in preparing these documents) there has been a rise in 

. These documents lay out how and when beneficiaries will receive their inheritance, as well as establish who the executor(s) will be. 

2. A document granting an executor Power of Attorney

The executor of your estate will need your Power of Attorney to make decisions on your behalf. There are different kinds of POAs, so it’s important to be specific when you’re making this designation. An executor is entrusted with 

: to gather and keep safe all relevant assets until they’re given to their beneficiaries; pay all debts of the decedent including funeral expenses, and any estate administration fees; handle all tax matters including filing the decedent’s final tax returns; and distributing all other assets specifically named in the will. 

Also known as a living will that will designate someone with your 

 or HCPA. This directive allows you to empower another person to make medical decisions on your behalf. If at any point in your life, you suffer a medical emergency and cannot communicate your wishes, this person will make those decisions for you, ideally, previously communicated by you. 

A living trust is so-called because it is created when the owner, or trustor, is still alive and revocable in that it can be changed (a will, in contrast, only goes into effect once the owner has passed away). It is sometimes considered an either/or -- either you have a will, or you have a trust. That’s not a hard and fast rule, and it’s possible to have both. They operate similarly, but whereas a will must go through 

 (the legal process that gives recognition to the will and hears objections), a trust does not. It can help streamline the inheritance process, but you’ll also tend to pay more for the pleasure. 

An estate plan is generally executed by filing the will and testament with the probate court, which will review the will and 

, thus giving them the go-ahead to begin performing their functions. The executor will file a public notice, and begin paying any debts – this is where having a financial plan in place will make the process easier on your friends, family, and the executor if they are neither. After distributing the assets as laid out in the will, 

How often should someone revisit an estate plan?

Like any part of your financial plan, you want to revisit your estate plan when you experience major life changes or invest or acquire real estate or anything else that might be considered an 

. This can include anything from marriage, divorce, birth of a child, when you buy or sell land and property, and if you or a beneficiary are diagnosed with a chronic illness. If you move out of state -- it’s especially important to revisit your estate plan because 

estates are governed by the laws in the particular state

, our goal is to help you enjoy your retirement with confidence, not worrying about whether or not you have enough money to enjoy it.

We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. Incorporating an estate plan into your overall retirement vision can be challenging to tackle on your own, especially with such personal and complicated subjects. When you 

 Estate Planning 101: The Basics 

So, how can couples get on the same page about their finances so they can fully take advantage of their retirement? We have some ideas.

Of all the things people fear most in retirement, 

 is routinely high on the list. Other common anxieties include 

claiming Social Security benefits too early

. These are what former US Secretary of Defense Donald Rumsfeld famously referred to as “

” or things we know to plan for. What people don’t expect to plan for? Divorce.

Divorce rates for people over 65 have skyrocketed

 in the past few years, and Forbes’ not only has a fun name for the phenomenon (“

”) but a thought-provoking theory as to why: money. Not being on the same financial page with your spouse or significant other can have a detrimental impact not only on your relationship, but your financial and retirement plans as well. 

 have money management styles that differ from their partner’s. Will that be your downfall? Differing opinions don’t have to doom your relationship, but understanding the sources of these opinions and how they may be avoided or assuaged is critical to honestly mapping out your financial plans.

When you make a commitment to a goal, you’re holding yourself accountable for making it happen and 

 As you plan for retirement, don’t worry that every decision you make will be 

. That’s not how it works! In fact, planning for retirement not only means planning for your future, but also protecting yourself from what the future may hold.

Start with a general idea of how you’d like to spend your retirement years (Near the grandkids? Traveling the world? Moving back to your hometown?), then start setting up investment accounts. If you already have them, make sure you’re getting the most out of your investment; if you don’t, make plans to build up. Set up milestones so you and your partner always know where you’re at financially and why you’re doing it.

 the more open we are about money, the better equipped we are to make positive financial decisions. If talking about finances is uncomfortable for you, figure out why and move on.

. Even our best-laid plans can be waylaid by unexpected events. At the onset of the Covid-19 pandemic in 2020, for instance, many investors were driven to sell stocks, a move 

. Mistakes like these don’t always dictate your relative success or failure as an investor, but having a financial plan in place may compel you to think twice before reacting to major events.

Some people have been known to end relationships because their partners are 

. If you’ve made financial mistakes and refuse to acknowledge or accept the reality, you may find it difficult to maintain an appropriate level of trust with your partner. 

 found that money is not the most frequent source of marital conflict in the home, but when compared to non-money issues is “more pervasive, problematic, and recurrent, and remained unresolved, despite including more attempts at problem solving.” That’s a pretty scathing indictment. 

Money is personal. When couples think they’re arguing about money, sometimes they’re actually 

 entirely. Plans that weren’t communicated, broken commitments, and the disrespect of time are 

, and you don’t always outgrow those issues the longer you’ve been together. Make sure you’re addressing the problems you’re facing instead of the failures of the person.

No doubt, upon reading this you may have sighed at the thought of a monthly budgeting session. We like to spend our downtime relaxing, doing things we love, or anything that’s not balancing a checkbook or working on a budget. Making a budget can be 

Making a budget can also be freeing. There are many new ways for couples to get on the same page with their budget without it feeling like drudge work. The internet is a fantastic place to find a multitude of apps like 

 (among many others) that can help not only to make sense of budgeting, but to make sure you’re aligned and budgeting with your financial plan in mind.

Being transparent with your spouse is a major key in getting on the same page with your spouse. There’s a big difference in 

. The main differentiator is if you’re committing 

-- intentionally deceiving your partner about how you’re managing money in a joint account -- or not. Are you saving for a surprise trip, or planning to leave your relationship? It can be a thin line and secrecy is notorious for breeding suspicion. 

This one may seem like a no-brainer but talking to your spouse before making significant purchases should be non-negotiable. Transparency doesn’t mean no surprises, it just means you need to set the stage for a surprise by not making it a burden on your spouse.

Every holiday season, many of us are subject to commercials by car companies advertising their deep discounts – shiny vehicles, jaw-dropping locales, and big red bows. One of the more inane of these has been airing for at least three years and 

” campaign. It features an affluent couple whose surprise holiday gifts for each other are two, fully loaded, just-out-of-production SUVs. For many people watching, the ad is a “

 of a similar ad where one well-intentioned husband presents a new vehicle to his surprised wife, who then demands he take it back after it’s revealed he’s been unemployed for two years and borrowed money from a neighbor to pay for it.

, researchers found two-thirds of consumers have an agreement with their significant other to talk before spending more than a set amount, however, even with that admission, they also found “18 percent weren’t in sync about having a spending cutoff, and 54 percent cited a different amount than their partner.” What’s actually revealed is that we’re not really talking about big purchases with our spouses nor being as transparent as we think we are.

It should come as no surprise that we, as a people, 

. It’s uncomfortable, it’s loaded, and some even find it embarrassing. If you’re in a serious relationship, however, the foundation must be one of trust and respect and that means you shouldn’t get into a serious conversation about money when one or the other of you is, for lack of better words, not in the mood.

As with any serious conversation, you can’t be flippant with time. If you need to talk, treat the subject like you would other serious conversations – schedule time, communicate the importance, and be honest. And if your spouse chooses the wrong time to take a deep dive into your shared financials, don’t shut them down immediately. Good communication between couples means you can a

cknowledge it’s an important conversation

 and plan for a better time where you both can be fully engaged. Be careful with this tactic, however, because if you don’t come around to discussing the subject, it may come across as avoidance.

How you say things matters. Just like those old schoolhouse posters used to say: “there is no I in team,” there is no “I” when you’re planning a future with a partner. Retirement can be complicated and when you have two or more incomes and plans and decisions that have been coming down the pipe for years, it’s important to remember your plan is for a shared future.

, our goal is to help you enjoy your retirement with confidence, not worrying about whether or not you have enough money to enjoy

 and learn how you and your spouse can get on the same page when it comes to your retirement goals. 

, you’ll discover how we can help you balance your portfolio to meet your unique needs. 

 Let us help you create a personalized plan so you can enjoy the retirement you’ve worked so long and hard for. 

https://money.usnews.com/money/retirement/aging/articles/common-retirement-financial-fears-and-how-to-overcome-them

https://www.fool.com/retirement/2020/09/18/worried-about-a-stock-market-crash-during-retireme/

https://www.cnbc.com/2019/11/15/supporting-your-adult-children-can-ruin-your-retirement-plans.html

https://www.usatoday.com/story/money/2019/06/28/social-security-claim-too-early-and-lose-100-000-retirement/1572620001/

https://www.theatlantic.com/politics/archive/2014/03/rumsfelds-knowns-and-unknowns-the-intellectual-history-of-a-quip/359719/

https://www.washingtonpost.com/news/get-there/wp/2018/03/26/a-gray-divorce-can-devastate-your-retirement-plans-heres-how/

https://www.forbes.com/sites/margueritacheng/2019/02/26/grey-divorce-its-reasons-its-implications/?sh=411b4c854acd

https://www.cnbc.com/2019/05/07/the-biggest-mistake-that-destroys-relationships-according-to-financial-therapist.html

https://www.entrepreneur.com/article/328070

https://henrytapper.com/2020/01/02/retirement-plans-are-never-set-in-stone/

https://www.bustle.com/life/how-talking-about-money-will-benefit-your-life-according-to-finance-experts-75782

https://www.businessinsider.com/money-mistakes-advice-from-financial-planner-2018-11

Welcome to Our Financial Tips Blog

What’s the point of an annuity?

Estate Planning 101: Why Estate Plans Matter

Estate Planning 101: The Basics

8 Ways Couples Can Plan for Retirement Together

6 Factors Will Decide How Much You Need to Save for Retirement

Will You Be Able To Afford In-Home, Long-Term Care?

Why You Should Consider Life Insurance and When You Should Get It