Pay Yourself Forward

Money-smart Strategies for Creating and Keeping Retirement Income

(ARA) - Retirement is here for the first wave of America's 76 million baby boomers. And ready or not, many are faced with the task of converting their savings into a retirement paycheck while still growing their nest egg -- a challenge complicated by the unpredictability of today's stock market. According to many industry experts, boomers may need to consider radical, fresh methods for generating income during retirement.

"Pre-retirees should be looking for products that will provide a guaranteed stream of lifetime income while still allowing them to maintain control over their assets," says Christine Marcks, president of Prudential Retirement. "At this stage of the game, it's important to retain the potential to benefit from market growth while also protecting your income from losses."

Marcks offers these tips for those hoping to create a paycheck for life:

* Put your savings to work. Just because you've stopped working does not mean your retirement income should stop growing. Consider investing in the new generation of retirement income products that guarantee a minimum annual income while offering a measure of flexible control over assets.

* Stick to your strategy. The stock market promises only one thing: it's never predictable. Ask about new product innovations that let you take advantage of potential market upswings while shielding income from inevitable downturns.

* Create a paycheck for life. Seventy percent of older workers - those between the ages of 55 and 64 - welcome the new options that convert their assets into a guaranteed lifetime income stream. (Source: Prudential Retirement's 2006 Workplace Report on Retirement Planning.) Some of these products come with built-in guarantees, eliminating worry about outliving your assets. Investors can retain some ownership of their money too, along with guaranteed lifetime income.

* Maintain control and access to your nest egg. Most people want to maintain control over their savings and be able to access it on the proverbial "rainy day." They also want their heirs to receive any remaining assets at death. Some new products available through the workplace may allow both greater flexibility and access to funds as compared to traditional products.

* Postpone Social Security benefits. You can claim Social Security retirement benefits as early as age 62 or as late as age 70. The longer you wait, the larger the monthly benefits. (Source: Prudential Financial, Innovative Strategies to Help Maximize Social Security Benefits, April 2006.) .

* Practice tax-smart asset distribution. To make retirement assets last as long as possible, always consider the total amount of taxes you may owe to the government and how to best manage the unlocking of those tax liabilities over time. (Source: Prudential Financial, Tax Wise Retirement Distribution Planning, white paper, April 2006.)

If you are thinking about retirement within the next few years, you probably have some concerns about making sure you don't outlive your stream of income. And given today's marketplace, the concern is a valid one. Talk to your employer about the in-plan options in your 401(k), 457 or 403(b) or to a qualified financial advisor today to learn more about new and innovative ways to generate a retirement paycheck for life. More information is also available at www.prudential.com/retirementincome.

Courtesy of ARAcontent

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