How Can We Plan for Retirement? (3)
Duration of withdrawal of the current pension:
A situation is paid on death, that is to say that if your benefit is 7% and you have survived 10 years after purchasing this contract, you will only recover 70% of the capital. If you survive for 20 years, You get back 140% of the capital, the more you live, the more you earn.
Another situation is that the insurance company’s contract clearly states how many years you can take. If you die before, your spouse or children will take the remaining years. For example: the fixed term of the contract is 30 years and your benefit is 6%. Then in 20 years you can get a total of 180% of the capital. If you unfortunately die in 30 years, your spouse or children will take the remaining years. More suitable for the combination of old couples and young wives.
There is also a situation where the couple buys together (joint survival) until both pass away. For example, if husband and wife are insured together, the benefit is 7%. If one of the spouses dies in 10 years and the other dies in 30 years, then the family can receive a total of 7% x 30 = 210% of the capital in 30 years. This extraction method is more suitable for the combination of old couples and young wives.
Payout annuities are best suited to older people (because the older you are, the higher the benefits will be) or a combination of older couples and young wives.
The deferred annuity means that you give the money to the insurance company. The insurance company guarantees that your capital will increase by 5% to 7% each year. However, the insurance company stipulates how many years it will take the customer to withdraw the money from the account (usually 7-10 years). Before this period, a certain percentage (usually 10%) can be proposed to avoid fines each year.
For example: 10 years ago, you put 200,000 in an annuity from an insurance company and increased by 5% each year. After 10 years, you can withdraw the principal from the contract each year + 5% of the total growth (about $ 16,000 per year) for a total of 20 years After receiving it, China received $ 320,000 in 20 years .
Deferred pensions are more suitable for those who retire in 10 years (52-57 years). But it is not suitable for people over 66 years old.
There are many things to take into account in the personal annuity, the most important points are in order of importance:
a) The duration of the annuity contract. The longer the term of the contract, the harder it is to get the money you have invested. To give an example: compare an annuity with a contract duration of 5 years and a contract duration of 15 years. An annuity with a contract term of 5 years can get annuity money 5 years after signing the contract. A 15 year contract has to wait 15 years before you can get money on the contract. If you take the money out early, there will be a lot of fines. Therefore, when choosing an annuity, it is usually ideal to choose a contract between 5 and 10 years for the duration of the contract, and a 10-year contract should be carefully considered.
b) After the contract expires, what is the maximum percentage that can be withdrawn from the contract each year? Some annuity contracts will mark 4% in an inconspicuous place. If it is 4%, your annuity money will take 25 years to come out. If you want to shorten the time limit for withdrawing the money, you will impose a certain amount of fines.
c) The fixed annual growth of the principal - the annual cost of the contract = the real growth of the principal in the contract. When choosing to purchase an annuity, you should read the annuity contract carefully and understand the points that require attention in a, b, c. Listed above.
6. Before age 65, there is a company or person responsible for employees or their own medical insurance After age 65, your liability for medical insurance will transfer to the government. After paying a small monthly medical insurance fee, you will get medical insurance from one of the best medical insurance systems in the world.
It should be noted that you have to remember to apply to the government when you turn 65, there will be a fine after the time, and it is a lifetime fine.
Another point is that even with one of the best medical insurances in the world, US medical insurance only has a 90 day long term care indemnity period. If you go over 90 days, you must pay all nursing costs yourself.
Many insurance companies in the market include the option of long term care in life insurance. This option can help pay for long-term care that must be paid after 90 days. However, when taking out this type of insurance, you should clearly see that the payment method in the contract belongs to 1) First, pay the cost of long term care, then send the invoice to the company insurance, and the insurance company will enter the cost you paid in advance. To your bank account, or 2) The insurance company first credits your monthly long-term care costs to your bank account. These two ways. In general, method 2) is better and there is no possibility that the insurance company is unwilling to compensate or only partially compensate.
