variable annuities and estate planning

Estate Planning Clients Can't Afford To Lose Financial Assets

From "Fool's School, Beware of Variable Annuities"

From "Fool's School, Beware of Variable Annuities"

Many of our estate planning legal services clients are concerned about their retirement savings and their market risk and potential for financial loss. If your investment portfolio loses 20% of its value, you'll need a subsequent 25% gain just to get back to even. How do you do that when you are no longer working and earning?

Market losses cause many to either reduce their risk - making it harder to get even, or to increase their risk to try to earn more - increasing their risk of losing even more. At 2%, it takes over 11 years to grow back the 25% that you lost in the market.

It certainly appears that the challenge described above means that managing your money in retirement is different and as important as saving money for retirement - managing in retirement demands even more efforts toward protection from loss. Many seniors who engage us to perform estate planning legal services want to prioritize protection rather than potential growth.