How do your retirement and investment accounts look? When you signed up for the 401k did you choose a plan that was a high growth plan? If so you have a plan with stocks and bonds in it. How are they performing you have enough income from your investment to get you through your entire lifetime?
The Conservative Client
Conservative clients have a very low risk tolerance and will place prime importance on preservation of principal. They will usually be willing to accept lower potential gains for a higher level of safety. Fixed instruments and annuities may make up the majority of their investments. The following allocation picture may best suit this client.
The Average Client
The average client is interested in some safety but also wants some of the potential gains that are associated with the equities markets. With this client, the assets allocated for retirement income would be placed in annuities and other available income would be in more aggressive investments. Equity indexed annuities may be good for the retirement income objective with this client, depending on the length of time to retirement. The allocation may appear as shown below.
The Aggressive Client
This client is willing to risk safety for higher growth potential and is more prone to invest in equity funds. Equity indexed annuities may provide safety for retirement funds and still allow for participation in the market, without the downside risk. This graph shows how this asset allocation may appear.