Retirement Planning

With significant advances in medicine and healthier lifestyles, people are living longer than ever before. Today, the average American will spend 20 years or more in retirement—up from 10 years less than a century ago. With longer life expectancies and mounting uncertainties about the future of Social Security, many people now view retirement as an opportunity to pursue a new career or work part-time, rather than leave the workforce completely.

Whether retirement for you means exploring a new occupation, relaxing on the beach every day, or traveling around the world, one thing is certain—planning now will bring you closer to your goals tomorrow. As investment advice suggests, it's never too early to plan for retirement because the more time your money has to grow, the more money you'll have.

It's a fact
Compound returns make money grow faster than saving and accumulating money alone. Here's a startling example of this truth in action. Suppose you put $100 into the stock market every month for ten years at a rate of 8 percent growth (tax deferred). You then stop contributing any new money, but leave what you've already invested in the stock market where it grows 8 percent each year for an additional 40 years. After 50 years, your ten years of contributions will have grown to $402,121. Compare this to the procrastinator who waits 10 years to invest. Even though this person is persistent and continues to contribute $100 to the stock market each month for the next forty years, at a growth rate of 8 percent each year (tax deferred), after the same 50 years, his or her total will only be $351,273.

Three Important Concepts to Consider
While there are thousands of retirement vehicles and financial products available to assist you in planning for a secure retirement, here are three useful concepts to consider as you develop and implement your plan:

  1. You'll be more motivated if you know how much money you'll need to fund your retirement goals. Use this retirement calculator to help estimate this amount and determine if your current saving and investing strategies will get you where you want to go.

  2. You've heard it before because it's true; diversification is a key to an effective investment strategy. Consider a mix of stocks, bonds, annuities, whole life insurance policies, cash, and other vehicles. Generally, as you move closer to retirement, your mix should become more conservative.

  3. When you invest, strive to minimize your tax rate so you can increase your earnings. Developing a tax plan is vital to preserve your money. Consider contributions to tax-deferred vehicles such as 401(k) plans, Individual Retirement Accounts, and tax-deferred annuities.

  4. stablishing a high cash value life insurance program may help you enjoy more income from your other retirement programs. Explore the tax-free benefits—available to you and your heirs—through whole life insurance.

For more information on how Mutual Trust Life Insurance Company products can help you reach your retirement goals, click here.

Our Life Insurance Products

> Whole Life Insurance

> Term Life Insurance

> Fixed Annuities

> Riders

Calculate the Benefits

Human Life Value Estimator
Assess the impact your earnings have on your family and other loved ones.

Retirement Savings Estimator
Determine the amount you will need to save each month to reach your goals for retirement.

Retirement Income Estimator
Determine the amount of income you will earn throughout your lifetime.

How Long will the Proceeds Last
Find out how long the proceeds from an insurance settlement will last.

Effects of Procrastination
Find out how much you can save if you start now, as opposed to starting ten years from now.

Find An Insurance Advisor

Mutual Trust insurance advisors can help you achieve your short- and long-term financial goals. Don't wait, consult one today.

Find an advisor.

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