You've spent decades building your retirement savings. Now comes the harder question: will that money actually last?
A retirement plan that looks solid on paper can quietly fall apart when hit with a decade of poor market returns, rising healthcare costs, or simply living longer than expected. For pre-retirees in Bentonville, Arkansas-many of whom are business owners, executives, or professionals with complex financial lives-the stakes are especially high. This guide walks you through exactly how to pressure-test your plan so you can retire with confidence rather than crossed fingers.
Key Takeaways
- 01
A retirement plan that's truly "built to last" can fund your living expenses from about age 62 through age 95 or beyond, surviving different market conditions, tax changes, inflation spikes, and health surprises along the way. It's not enough to simply have a large nest egg; what matters is whether your money can keep pace with your actual spending over three or more decades.
- 02
The quickest way to stress-test your plan's durability is to check three things: your sustainable withdrawal rate (the percentage of your portfolio you draw annually), how long your cumulative savings may last at different inflation rates, and what happens under worst-case market and longevity outcomes. A sustainable withdrawal rate is typically 4% to 5% annually for most retirees, though your specific number depends on several factors.
- 03
Coordinating social security benefits, 401 k accounts, IRAs, pensions, and annuity benefit payments into a tax-aware retirement income strategy often matters more than the raw dollar amount in your accounts. A robust retirement plan should aim to replace 70% to 80% of pre-tax income in retirement, but how you draw that income-and from which accounts-determines how long it lasts.
- 04
Many pre-retirees in their early 60s in Bentonville underestimate both life expectancy and healthcare costs, which can quietly break an otherwise solid retirement plan. A 65-year-old couple retiring today needs approximately $157,500 saved just for healthcare expenses in retirement, on top of regular living expenses.
- 05
At Revolutionary Wealth, we use professional planning software to run hundreds of "what if" simulations-market crashes, higher inflation, early death of a spouse, business sale scenarios-to determine whether a client's plan is truly built to last. Regularly revisit your retirement plan to account for life changes and market shifts, because what works at age 62 may need serious adjustments by age 72.
Start with a Quick Durability Check
If you want a fast answer to whether your retirement plan may last, here's the simplest test you can run right now-before diving into deeper analysis.
How to calculate your back-of-the-envelope withdrawal rate:
Take the annual retirement income you want from your portfolio (after subtracting any guaranteed income like Social Security or pensions) and divide it by your total retirement accounts and other savings at your planned retirement date.
Desired annual withdrawal ÷ Total portfolio = Withdrawal rate
The 4% rule guides checking if the withdrawal rate aligns with standard recommendations. You can also calculate total needed capital by multiplying expected annual retirement expenses by 25 (the inverse of 4%).
A Bentonville example: Suppose a couple plans to retire in 2028 with $1,400,000 in cumulative savings across their 401 k, IRAs, and a taxable brokerage account. They want $70,000 per year in after-tax income.
$70,000 ÷ $1,400,000 = 5.0% initial withdrawal rate
That's at the outer edge of what's historically sustainable. A 4% withdrawal rate works 90% of the time historically over 30-year time periods. At 5%, the math gets riskier-especially if the couple faces an early bear market or higher-than-expected inflation.
If your withdrawal rate is above roughly 5%–5.5% before taxes for a 30-year retirement horizon, treat it as a warning sign. Your retirement plan may not be built to last without meaningful adjustments to spending, savings, or retirement date.
But if the couple also expects $30,000 per year in Social Security, the picture changes. Now they only need $40,000 from savings:
$40,000 ÷ $1,400,000 = 2.9% withdrawal rate
That's much more durable.
Important: This quick check is only a starting point. It doesn't account for taxes, inflation rate assumptions, investment risk, or healthcare costs. Those require deeper analysis, which is what the rest of this guide covers.
Clarify Your Retirement Age, Timeline, and Life Expectancy
Every other calculation in your retirement plan depends on one foundational number: how many years your money needs to last. Get this wrong-even by five years-and a plan that looked solid suddenly isn't.
Why your retirement age matters so much:
Retirement age affects the duration of savings needed in ways that compound dramatically. Retiring at 62 instead of 67 means five more years of withdrawals and five fewer years of contributions and growth. For someone with a $1.2 million portfolio, that difference alone can mean $300,000+ in lost future value.
Retirement Age | Years to Fund (to age 95) | Key Consideration |
|---|---|---|
62 | 33 years | Longest horizon; no Medicare until 65; reduced Social Security |
67 | 28 years | Full retirement age for most; Medicare eligible at 65 |
70 | 25 years | Maximum Social Security monthly benefit; shorter drawdown |
Retirement can last 25 years or more today, and for healthy, higher-income individuals in Bentonville, planning to age 90 or 95 is realistic. |
Don't plan only to age 85. Current actuarial data shows that a healthy 65-year-old man has about a 35% chance of living to 90; for women, it's closer to 45%. For a couple, the probability that at least one spouse reaches 90 is roughly 60-65%. Joint life expectancy should drive the planning horizon for married couples.
A Bentonville-specific note: Average life expectancy in Benton County is approximately 78.2 years-six years above the Arkansas state average of about 72.3 and slightly above the national average. But county averages include the entire population. Higher-income, health-conscious retirees with access to quality healthcare routinely live well into their 90s.
Other factors that shift the timeline:
Family health history (longevity or chronic illness on either side)
Plans to work part-time in early retirement (reduces early withdrawals)
Timing of a business exit (a sale in 2028 vs. 2032 changes everything)
Whether one spouse is significantly younger than the other
A 5% withdrawal rate is sustainable for a 25-year retirement, but if you're 62 and healthy, you may need to plan for 33 years-and that same 5% rate becomes much riskier.
Inventory Your Retirement Income Sources and Accounts
Before you can test whether your retirement plan is built to last, you need a clear picture of what you're working with. Think of this as a financial inventory-list everything, then sort it by reliability.
Step 1: List all retirement accounts and savings
Work through this checklist and note the current balance of each:
401 k and 403(b) plans (current and prior employers)
Traditional IRAs
Roth IRA accounts
SEP or SIMPLE IRAs (common for business owners)
Cash balance or defined benefit pension plans
Taxable brokerage and investment accounts
Bank savings accounts and CDs
Business equity (estimated market value)
Real estate holdings outside your primary residence
A common benchmark is to save approximately 10x to 12x your income by age 67. If your household income is $150,000, that's $1.5M to $1.8M in current savings and retirement funds. But the benchmark only tells part of the story-you also need to aim to save at least 15% of your gross annual income for retirement during your working years.
Step 2: Document predictable benefit payments
List every source of guaranteed or semi-guaranteed annual retirement income:
Social Security (estimate your monthly benefit at age 62, full retirement age, and 70 using ssa.gov)
Employer pensions
VA benefits for service members or veterans
Annuity income (fixed, indexed, or immediate)
Rental income (if relatively stable)
Step 3: Separate guaranteed from market-dependent income
This is where the real insight comes from. Essential expenses should ideally be covered by guaranteed sources like Social Security or pensions. Everything above that-travel, gifting, extra funds for lifestyle-can come from your investment portfolio.
Example: A 65-year-old in Bentonville has $800,000 in 401 k and IRA assets held across two accounts, $200,000 in a taxable brokerage, and projects a $2,500 monthly amount from Social Security starting at 67. No pension.
Guaranteed retirement income: $30,000/year (Social Security)
Market-dependent assets: $1,000,000 total
If desired spending is $65,000/year, the portfolio must generate $35,000 annually = 3.5% withdrawal rate
That's a solid starting position. But ensure you have a mix of taxable, tax-deferred, and tax-free accounts for tax flexibility-it makes a meaningful difference in how much you actually keep.
Common gap for business owners: Many successful business owners in Bentonville have substantial illiquid business equity but underfunded personal retirement accounts. If 60% of your net worth is locked in your company, your retirement plan's durability depends heavily on when and how you exit-and at what valuation.
Test Your Sustainable Withdrawal Rate and Spending Plan
Your sustainable withdrawal rate is the annual percentage of your portfolio you can spend-adjusted for inflation each year-without running out of money over your retirement. It's the single most important number in determining whether your retirement savings last.
The 4%–5% guideline: a starting point, not a guarantee
Historically, withdrawing 4% to 5% yearly has been considered a range for sustainable retirement income. The original research by William Bengen in the 1990s suggested 4% was safe for 30-year retirements using balanced portfolios. But recent research tells a more nuanced story.
Morningstar's 2025 "State of Retirement Income" report found that for a balanced (roughly 50/50) stock-bond portfolio, the highest "safe" starting withdrawal rate with a 90% probability of lasting 30 years is approximately 3.7%. Retiring in a strong market allows higher withdrawal rates, but you won't know you retired in a strong market until years later.
How to calculate your withdrawal rate:
Determine your desired annual spending in retirement (your retirement budget)
Subtract guaranteed income (Social Security, pension, annuity)
Divide the remainder by your projected portfolio value at your retirement date
If the resulting number is between 3.5% and 4.5%, you're in a reasonable zone. Above 5%, you're taking on greater risk that the plan won't survive a full retirement.
Why inflation is the quiet killer:
You must adjust withdrawals annually for inflation to maintain purchasing power. Inflation can diminish purchasing power over 20-30 years in ways that feel invisible at first but become devastating later.
Consider two scenarios for a $1,200,000 portfolio with a 4.5% initial withdrawal ($54,000 in the first year):
Scenario | Average Inflation | Year 1 Withdrawal | Year 20 Withdrawal (inflation-adjusted) | Portfolio Survives? |
|---|---|---|---|---|
Moderate inflation (2.5%) | 2.5% | $54,000 | $88,500 | Likely yes (30+ years) |
Elevated inflation (4.5%) | 4.5% | $54,000 | $129,800 | At serious risk by year 25 |
Under elevated inflation, your monthly spending nearly triples in today's dollars over two decades. That's the difference between a plan that lasts and one that fails. |
Flexible spending strategies improve your odds dramatically:
Rather than rigidly withdrawing the same inflation-adjusted amount every year regardless of market conditions, consider guardrail strategies:
In years when your portfolio drops more than 10%, reduce discretionary spending by 5-10%
Delay large purchases (new car, major renovation) after a bad market year
Build a retirement budget with "essential" and "lifestyle" tiers-cut from lifestyle first
This flexibility can improve the probability of your retirement savings lasting from roughly 80% to over 95% in many scenarios. Withdraw 4% to 5% yearly to sustain retirement savings, but be willing to flex that number when markets or the inflation rate force your hand.
Your investments must outpace inflation while taking on acceptable risk-which brings us to how your portfolio is actually invested.
Evaluate Investment Risk, Asset Allocation, and Sequence of Returns
How your retirement funds are invested matters just as much as how much you've saved. Two retirees with identical portfolios can end up with wildly different outcomes based on one often-overlooked factor: the order in which returns arrive.
Asset allocation drives sustainable withdrawals
Your asset mix-the split between stocks, bonds, cash, and possibly alternatives-directly determines how much income your portfolio can reliably generate. Generally:
A conservative portfolio (40% stocks / 60% bonds) offers lower volatility but also lower expected returns, supporting withdrawal rates closer to 3.0-3.5%
A balanced portfolio (60% stocks / 40% bonds) historically supports withdrawal rates of 3.5-4.0% with moderate risk tolerance
A growth-tilted portfolio (75%+ stocks) can support higher rates but introduces greater risk during declining markets
A balanced investment portfolio can yield higher returns over long time periods, but the ride is bumpier. A well-diversified portfolio helps mitigate investment risks by spreading exposure across asset classes rather than concentrating in any particular investment, employer stock, or single sector of mutual funds.
Sequence of returns risk: the hidden threat
This is the risk that catches even well-prepared retirees off guard. Here's why it matters:
Imagine two retirees who both earn an average 7% annual return over 30 years. Retiree A gets strong returns in the first decade and weak returns later. Retiree B gets hammered early and recovers later.
Same average. Completely different outcomes. Retiree B-who faced declining markets early while making withdrawals-runs out of money years sooner.
A 2026 QuantCalc simulation of 50,000 retirement paths using a 4% withdrawal from a 60/40 portfolio found:
When the first decade was among the worst 10% of sequences: 46% failure rate
When the first decade was among the best 10%: near 0% failure rate
Investment returns fluctuate and influence retirement savings longevity-but the timing of those fluctuations matters enormously. Past performance does not predict future results, and market volatility in early retirement can permanently alter your trajectory.
Evaluate your income durability against inflation and market volatility. It's not about chasing returns-it's about surviving the bad years without being forced to sell at the bottom.
The bucket strategy: a practical buffer
One widely used approach is keeping 1-3 years of essential living expenses in cash or short-term conservative investments. This "bucket" means you don't have to sell stocks during a bear market to cover monthly spending. Your investment portfolio stays intact, giving it time to recover.
At Revolutionary Wealth, we build and monitor portfolios for Bentonville clients around specific retirement dates and risk tolerances-not generic model portfolios, drawing on our specialized retirement planning team. Your investment options, asset allocation, and rebalancing schedule should reflect your actual timeline, income needs, and comfort with market conditions.
Factor In Taxes, RMDs, and Benefit Payment Rules
Even a well-funded retirement plan can fail if taxes and required distributions are ignored. Taxes on withdrawals affect the net amount available in retirement, sometimes dramatically. A dollar withdrawn from a traditional 401 k is not the same as a dollar from a Roth IRA-and the difference compounds over decades.
How different accounts are taxed:
Distributions from traditional 401 k and IRA accounts are taxed as ordinary income at your federal and state tax rate
Qualified withdrawals from a Roth IRA are generally tax-free (subject to the 5-year rule and age requirements)
Taxable brokerage accounts generate capital gains, dividends, and interest-each taxed differently
Social Security benefits may be up to 85% taxable at the federal level depending on your provisional income (thresholds: $25,000 single; $32,000 joint)
Required Minimum Distributions (RMDs) under SECURE Act 2.0:
Under current specific rules (as of 2026):
If born 1951-1959: first RMD at age 73
If born 1960 or later: first RMD at age 75 (effective date: 2033)
RMD penalty for a missed distribution: 25% of the shortfall, or 10% if corrected within two years
Roth 401(k)/403(b) accounts are now exempt from lifetime RMDs for account owners
Forced RMD withdrawals beginning in your early 70s can push you into higher tax brackets, increase Medicare IRMAA premiums, and make more of your Social Security taxable. If you don't plan for this in advance, you may owe taxes at rates significantly higher than necessary.
Tax-smart withdrawal strategies:
Consider a year-by-year approach to tax-efficient retirement income, using practical financial calculators and planning tools:
In the "gap years" between retirement and RMD age, consider Roth conversions at lower tax brackets
Draw from taxable accounts first to allow tax-deferred accounts more time to grow
Use Qualified Charitable Distributions (QCDs) after age 70½-up to $111,000 in 2026-to satisfy RMDs without increasing your taxable income
Coordinate your Social Security start date with withdrawals from retirement accounts to minimize lifetime taxes
Social Security timing and taxability:
Delaying Social Security to age 70 increases your monthly benefit by roughly 8% per year beyond full retirement age. But if you're drawing heavily from retirement accounts during those delay years, you may trigger higher tax brackets. The optimal start date depends on your other income sources, health, and marital status.
Bentonville and Arkansas-specific notes:
Arkansas is relatively tax-friendly for retirees. Social security is fully exempt from state income tax regardless of income. Arkansas also allows an exclusion of up to $6,000 per person per year for other retirement income (IRA, 401 k, pension distributions) for those age 59½ and older. Above that, the top state marginal rate is approximately 3.9%. If you're considering a move after retirement, Revolutionary Wealth helps clients model multi-state tax implications and the impact of RMDs on overall tax planning.
This isn't generic tax advice-it's specific planning that can save tens of thousands of dollars over a 30-year retirement, supported by a broader retirement and wealth management resource center.
Stress-Test Against Real-World "What Ifs" and Other Factors
A retirement plan is truly "built to last" only if it can survive multiple stress scenarios simultaneously-not just the average case. Here are the key factors you should test your plan against.
Poor early market performance:
What happens if your portfolio drops 20-30% within the first three years of retirement? As the sequence of returns data shows, this scenario can be devastating. Model what your plan looks like if you retire into a bear market and need to withdraw from a shrinking portfolio. If the plan still survives to age 95, it's durable. If not, you need a buffer or a spending adjustment.
Longevity risk:
Run projections to at least age 95 or 100 for one or both spouses. Healthcare costs are a significant factor in retirement planning-and they accelerate sharply in the final decade of life. Healthcare costs significantly impact retirement savings needs, with a 65-year-old couple needing roughly $157,500 saved specifically for medical expenses. Consider liquid cash reserves to cover unforeseen medical costs without selling assets during a downturn.
Different inflation rate paths:
Test what happens if inflation runs at 4-5% for the first five to ten years of your retirement. Even with a solid portfolio returns history, elevated early inflation combined with regular withdrawals can drain a plan far faster than moderate inflation scenarios.
Big-ticket surprises:
A sustainable retirement plan navigates market downturns, inflation, and unexpected expenses. Model these scenarios:
Supporting adult children or grandchildren financially
Major home repairs or relocation costs
Sale of a business at a lower-than-expected value
Extended long-term care needs for one spouse
An inheritance or windfall (positive surprise, but still changes the plan)
How Revolutionary Wealth stress-tests plans:
We use planning software to run hundreds of Monte Carlo trials and scenario tests, turning all these other factors into a single, understandable probability of success. Rather than guessing whether your plan can handle various investment outcomes, you see concrete numbers: "Your plan has a 92% probability of lasting through age 97 under current assumptions, and an 78% probability under elevated inflation." That's the kind of advance notice that lets you make adjustments before problems become irreversible.
Align Your Plan with Your Life Goals-and Get Ongoing Guidance
Numbers only matter if they connect to how you actually want to live. The best retirement plan isn't just mathematically durable-it funds the life you've worked toward and supports a thoughtfully designed financial and lifestyle plan.
Translate numbers into spending categories:
Essential expenses: Housing, food, insurance, healthcare, taxes-these should be covered by guaranteed income sources when possible
Lifestyle wants: Travel, dining, hobbies, club memberships, gifts to family
Legacy and giving: Charitable contributions, estate transfers, education funding for grandchildren
If your retirement budget covers essentials from Social Security and pensions, and your investment portfolio only needs to fund lifestyle and legacy goals, your plan is far more resilient than one where every dollar of monthly spending comes from market-dependent accounts.
A retirement plan is a living document:
What looked sustainable at your retirement date may need meaningful adjustments by age 70 or 75. Review your plan at least annually, and supplement with ongoing educational retirement planning videos, and update it after any major life event:
Sale of a business
Death or serious illness of a spouse
Relocation to or from Arkansas
Receipt of an inheritance or extra funds
Major changes in market conditions or tax law
Set simple guardrails:
If your withdrawal rate exceeds 5.5% or your portfolio drops below a certain floor, revisit spending immediately. These guardrails act as an early warning system that helps you course-correct before the damage is permanent.
Revolutionary Wealth's role:
As an independent fiduciary firm based in Bentonville, Arkansas, we help pre-retirees, widowed or divorced women, and successful business owners integrate tax strategy, retirement financial planning, and estate planning into one coordinated strategy. We don't sell products on commission-we build plans designed to reflect actual investment results, your specific financial goals, and the realities of your life.
If you're within a few years of retirement, consider having your current plan professionally reviewed. A single session with an independent advisor can reveal whether your plan is truly built to last-or whether a few targeted adjustments could make the difference between confidence and worry.
FAQ: Building a Retirement Plan That Lasts
How often should I update my retirement plan once I stop working?
At minimum, review your plan annually. But also update it after any major change: a large portfolio move, a shift in health, the sale of a business, receipt of an inheritance, or relocation to or from Arkansas. Markets, tax laws, and your personal financial goals all shift over time, so what looked sustainable at age 62 might need meaningful adjustments by age 70 or 75. Think of your plan as a living document, not a one-time projection from a financial institution.
Is the 4% rule still safe for retirees in 2026?
The 4% rule is a historical guideline based on past U.S. data, and while a 4% withdrawal rate works 90% of the time historically, it should not be treated as a guarantee. Lower interest rates, higher inflation, and longer life expectancy all introduce uncertainty that didn't exist when the rule was first developed. Many clients need a personalized range-often 3.5% to 4.5%-based on their asset mix, expected rate of return, spending flexibility, and risk tolerance. Revolutionary Wealth can help you determine where you fall in that range.
What if I plan to keep working part-time after my main retirement date?
Part-time income in early retirement can materially improve your plan's durability by allowing lower withdrawals from retirement accounts during those critical first years. Even $15,000-$20,000 per year of earned income reduces portfolio strain significantly. However, note that earned income before full retirement age may reduce your Social Security monthly benefit temporarily (a special rules provision that many overlook), so it should be integrated into your overall retirement income plan rather than treated as a bonus.
How do I know if I have "enough" in my 401(k) and other accounts to retire?
Avoid one-size-fits-all numbers. Instead, work through these key inputs: your desired annual spending, expected guaranteed income (Social Security, pensions), total current savings and retirement accounts, your chosen retirement age, and your life expectancy assumptions. Rule-of-thumb ranges suggest needing 7-12 times your preretirement income saved by retirement age, but individual tax situations, healthcare costs, and financial goals-especially in Bentonville and Northwest Arkansas-require customized analysis. The real question isn't "do I have enough money?" but "can my money last long enough at the rate I need to spend it?"
Should I buy an annuity to make my retirement plan more durable?
Fixed or fixed indexed annuities can play a valuable role for retirees who want guaranteed lifetime benefit payments to cover essential expenses, or who worry about outliving their assets or experiencing cognitive decline that makes investment management difficult. However, annuities are complex-they involve other fees, surrender periods, and tax implications that must be evaluated alongside your other investments, estate goals, and overall retirement income plan. This analysis is best done with an independent advisor like Revolutionary Wealth rather than a product salesperson, whose personalized financial planning approach helps you invest directly in solutions that serve your interests rather than a commission structure.
Disclosures
Securities and investment advisory services offered through Integrity Alliance, LLC, Member SIPC www.sipc.org (opens in a new window). Integrity Wealth is a marketing name for Integrity Alliance, LLC. Revolutionary Wealth LLC is not affiliated with Integrity Wealth. This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all services referenced on this site are available in every state and through every advisor listed. Tax and legal services are not offered through Integrity Wealth.
Full disclosures
Neither Asset Allocation nor Diversification guarantee a profit or protect against a loss in a declining market. They are methods used to help manage investment risk.
Active portfolio management, including market timing, can subject longer term investors to potentially higher fees and can have a negative effect on the long-term performance due to the transaction costs of the short-term trading. In addition, there may be potential tax consequences from these strategies. Active portfolio management and market timing may be unsuitable for some investors depending on their specific investment objectives and financial position. Active portfolio management does not guarantee a profit or protect against a loss in a declining market.
Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.
Tax-loss harvesting is a strategy of selling securities at a loss to offset a capital gains tax liability. It is typically used to limit the recognition of short-term capital gains, which are normally taxed at higher federal income tax rates than long-term capital gains, though it is also used for long-term capital gains.
Not associated with or endorsed by the Social Security Administration, Medicare or any other government agency. Maximizing your Social Security Benefits assumes foreknowledge of your date of death. If as an example you wait to claim a higher monthly benefit amount but predecease your average life expectancy, it would have been better to claim your benefits at an earlier age with reduced benefits.
Any references to protection or steady and reliable income streams refer only to fixed insurance products. References to protection can also refer to estate planning. They do not refer, in any way, to securities or investment advisory products.
Fixed Annuities are long term insurance contracts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Withdrawals prior to age 59 1/2 may result in a 10% IRS tax penalty, in addition to any ordinary income tax. Any guarantees of the annuity are backed by the financial strength of the underlying insurance company.
Mutual Funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing in Mutual Funds. The prospectus, which contains this and other information about the investment company, can be obtained directly from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. An investment in the Fund involves risk, including possible loss of principal.
A REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate. There are risks associated with these types of investments and include but are not limited to the following: Typically no secondary market exists for the security listed above. Potential difficulty discerning between routine interest payments and principal repayment. Redemption price of a REIT may be worth more or less than the original price paid. Value of the shares in the trust will fluctuate with the portfolio of underlying real estate. Involves risks such as refinancing in the real estate industry, interest rates, availability of mortgage funds, operating expenses, cost of insurance, lease terminations, potential economic and regulatory changes. This is neither an offer to sell nor a solicitation or an offer to buy the securities described herein. The offering is made only by the Prospectus.
Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.
Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 1/2, a 10% federal tax penalty. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated.
Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.
QLACs cannot be purchased with Roth or Inherited IRA dollars; value of such IRAs cannot be included in determining 25% premium limit. If Funding Source is Traditional IRA, 25% limit is calculated by combining the total value of all Traditional IRAs as of December 31st of the previous year. If Funding source is Employer sponsored qualified plan (401k, 403b and governmental 457b), 25% limit is calculated on an individual plan basis based on the plan's account value on the previous day's market close. If you previously purchased a QLAC, the calculation of your 25% limit is more complicated. Please contact an attorney or tax professional for additional details. Any guarantees of the annuity are backed by the financial strength of the underlying insurance company.
The projections or other information generated by Monte Carlo analysis tools regarding the likelihood of various investment outcomes are hypothetical in nature, are based on assumptions that you provide which could prove to be inaccurate over time, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
This material is for general informational purposes only and is not intended to provide specific investment, tax, or legal advice or recommendations for any individual. Consult with your own tax or legal professional regarding your specific situation before acting on any information presented here. The information has been developed from sources believed to be providing accurate information, but no representation is made as to its accuracy or completeness.
Cash balance and other qualified retirement plan strategies described here are general in nature; actual contribution limits, deductibility, and plan design depend on individual circumstances, plan documents, and applicable IRS rules, and should be reviewed with a qualified plan actuary or administrator.