If you’re asking yourself this question, congrats – your head is in the right place. It’s important to know how much you’ll need in retirement and the tools that will help you get there!
We offer a fixed annuity called the Guaranteed Retirement Plan, to help round-out your retirement strategy. Our Guaranteed Retirement Plan turns your money into a life-long paycheck in retirement, and is a good addition to your 401k/IRA savings and Social Security.
Picture a retirement plan like a three-legged stool. You should have all three legs in order to build a strong foundation.
Social Security Leg: While you’re employed, you pay into Social Security through taxes; you receive benefits later on, when it’s your turn to retire.
Guaranteed Leg: Company pensions or annuities (like ours!). These have fixed returns, which means the money you earn is stable and secure – and not reliant on market performance.
Variable Leg: Mutual funds and investments like a 401(k) or IRA. These are variable because your returns are based on market performance – which can go up (yay!) or down (nay!).
Remember those things called pensions? Since most employers don’t offer those anymore, a fixed annuity like our Guaranteed Retirement Plan can help fill the void. How? You pay a monthly contribution until you retire, then we pay you a monthly “paycheck” for the rest of your life.
$50 PER MONTH
You pay a monthly contribution until you retire. (As little as $50 per month.)
Your money goes to us for safekeeping and earns 3% interest every year (plus dividends), compounded annually.
When you retire, we send you a paycheck for the rest of your life!
The money you contribute to your Guaranteed Retirement Plan buys you income to prepare for your future expenses, and unlike a savings account, you can’t run out of money. If you die before retirement age, all your contributions will be paid to your beneficiary.
1. Has at least $1000 in emergency savings
2. Between the ages of 30-45 years old
3. Contributes to a 401k or IRA
4. Concerned about outliving retirement money
5. Wants a risk-free option to supplement retirement plan
Mike is 30 years old and plans to retire when he’s 68. He currently contributes to a 401k but wanted to round-out his retirement plan with a fixed annuity, so he contributes $250 per month to our Guaranteed Retirement Plan.
In retirement, Mike will receive a “paycheck” of:
= $1,404 per month ($16,846 per year)
= With dividends, this could reach: $1,879 per month ($22,545 per year)
He plans to use that money to cover basic living expenses, and use his 401k and social security for the fun stuff!
Many people ask our financial guides, “what’s the catch?” There is none – except for your patience! Unlike other accounts like your 401k or IRA, you cannot take money out of this account before you retire. Like, zilch, zippo, nada.
That’s why we recommend people have a healthy emergency fund before applying for this plan. You will not be able to access this money until retirement. This is a good thing – your retirement account is meant to be for retirement!
Enter in some information to see personalized results on how much you could earn in retirement.
Schedule a call with one of our Financial Guides to apply over the phone.
If you’re approved, you’ll get instant issue of your new plan and can start saving!
The Guaranteed Retirement Plan is backed by the strength of Thrivent Financial, an A++-rated, not-for-profit, Fortune 500 company that is more than 100 years old. Also, since you can’t take money out, you won’t run the risk of raiding your account before you retire!
Yes. You determine your target retirement age when you establish the plan. Changes to this age (earlier or later) are allowed, but income payments will be adjusted accordingly.
No, once you start receiving income from the Guaranteed Retirement Plan, you’ll continue to receive that income for the rest of your life. That means eliminating the stress of balancing money in retirement and enjoying every extra year.
While a savings account is a good way to prepare for today’s expenses, it doesn’t help you plan much for tomorrow. Money contributed to the Guaranteed Retirement Plan buys you income to prepare for your future expenses, and unlike a savings account, you can’t run out of money.
The amount of money you have in a savings account is always accessible but that amount is all you’ll get. With the Guaranteed Retirement Plan, your money isn’t accessible until retirement but that amount may grow with dividends increasing your income. And, if you live a long time, you’ll likely get much more money in income than the money you contributed. At a minimum, you (or your beneficiary) will receive at least as much that you put in.
A good way to decide this is to think about your day-to-day expenses in retirement. Because payments under the Guaranteed Retirement Plan are guaranteed*, it’s a good way to cover those fixed expenses you know you’ll have in retirement. The money you’re contributing to your 401(k) might fluctuate a little more depending on how it’s allocated, so that money can be used for all the other expenses in retirement you can’t predict as well.
The Guaranteed Retirement Plan earns 3% interest, compounded annually, plus dividends. The 3% interest is guaranteed, fixed and will not change. Dividends may fluctuate with the market.
Each contribution that you make literally purchases income for you in retirement. Since your income payments last your entire lifetime, the longer you live, the greater the return.
One feature of the Guaranteed Retirement Plan is that once you contribute money, you can’t touch it until retirement. We know it’s a little daunting to have your money locked away, but we believe it’s really important.
First, it ensures you can get the most money in retirement as possible—when your money is locked in, it helps brightpeak give you a better guarantee.
Second, we know when money gets tight, it’s easy to sacrifice what’s saved for later to take care of today. But there’s no loan that can get you through retirement—it’s up to you to save. Having your money locked away not only helps us make you more money, it also protects your future self from the temptation of today.
Both a mutual fund and the Guaranteed Retirement Plan can be used to help you save for retirement but that’s about where the similarities stop.
A mutual fund builds you an account value that generally grows with investment earnings but can also decrease depending on the market. Mutual funds may have the potential for higher returns, but they also carry greater risk. The Guaranteed Retirement Plan is a fixed annuity that provides a steady, guaranteed income that can help ensure your fixed expenses in retirement are covered.
That’s why the Guaranteed Retirement Plan and mutual funds are great complements for each other; each offer their own benefits for your retirement plans.