3 Tips to Discuss with Your Financial Representative
Most Americans generate income for retirement from three sources: Social Security, an employer-sponsored retirement plan, and personal savings. However, because federal law does not recognize civil unions, same-sex marriage or domestic partnerships, LGBT couples can’t take advantage of Social Security’s spousal or survivor benefit programs. This means that properly preparing for retirement is especially important.
3 tips to discuss with your financial representative:
1. Review Your Work Retirement Plans
If you participate in a defined contribution retirement plan at work, such as a 401(k) or 403(b), you may wish to designate your partner as your beneficiary. Unfortunately, if your company offers a defined benefit plan (specifying the amount you’ll receive at retirement), your partner may not be entitled to the same benefits as a spouse.
2. Consider Cash Value Life Insurance
If properly structured, this cash value life insurance can provide tax-favored withdrawals or loans* to supplement your retirement income needs, while still protecting your loved ones with an income tax-free death benefit.
3. Invest in Savings and Lifetime Income Products
Products such as traditional Individual Retirement Accounts (IRAs), Roth IRAs and annuities are tax-favored and will help to ensure a continued income throughout retirement.
Interested in learning more? Just fill out the contact form on the right to have a MetLife representative who is experienced in assisting those in the LGBT community contact you.
* Tax-favored distributions assume that the life insurance policy is properly structured, is not a Modified Endowment Contract (MEC) and distributions are made up to the cost basis and policy loans thereafter. If the policy has not performed as expected and to avoid a policy lapse, distributions may need to be reduced, stopped and/or premium payments may need to be resumed. Should the policy lapse or be surrendered prior to the death of the insured, there may be tax consequences. Loans and withdrawals will decrease the cash value and death benefit. Cash value may not be guaranteed. Investments in variable life insurance are subject to market risk including loss of principal.