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.