News from Bay State Insurance Agency, Ltd.

Bay State Insurance Agency Limited

"Your Safe Money Team"

Newsletter

September 2012

Greetings! ,

It's hard to believe that another Summer is coming to a close. The kids are back in school and we are finally enjoying some cooler weather. And after all the heat and humidity we endured this summer, we certainly deserve the change.

There is also the possibility of other changes on the horizon for all of us and it will certainly have nothing to do with the weather. With the Presidential Election less than two months away, none of us truly know what impact the election will have on our economy.

What ever the outcome, our clients, who own Fixed Index Annuities, can rest assured that their hard earned retirement dollars are safe and secure. They are guaranteed by contract to never lose value due a downturn in the market. And we have all seen the Market take that downward path time and time again.

Give"Your Safe-Money Team" a call at 410-758-1680 and start saving for Retirement with a Fixed Index Annuity.

Protect Your Retirement Savings From Loss

It's no secret that many people's retirement savings are exposed to loss of value. The latest recession is a constant reminder of this risk. But losing value is only part of the problem. The time required to make up those loses can be the real issue.

If you lose this much:	At a 3% return, you'd need:	At a 6% return, you'd need:	At a 8% return, you'd need:
10%	3.6 years	1.8 years	1.3 years
20%	7.5 years	3.7 years	2.9 years
30%	12.0 years	6.0 years	4.6 years
40%	17.0 years	8.6 years	6.6 years
50%	23.2 years	11.6 years	9.0 years

We have a strategy to help address this concern.

A Fixed Index Annuity (FIA) offers a combination of protection and growth potential, which is especially important if you're close to retirement and don't have the luxury of time to make up losses before you need income. Keep in mind that in some years a fixed index annuity may not credit any indexed interest, and therefore it isn't' guaranteed to make up losses. But with a Fixed Index Annuity you are guaranteed never to lose any of your hard earned retirement savings due to a down turn in the market index.

With a Fixed Index Annuity, you have the potential to earn interest based on positive changes in a market index or a fixed rate determined by the insurance company. Fixed Indexed Annuities typically place some type of limit (cap) on interest credited when the market index goes up over a specified time period - annually or monthly.

BUT REMEMBER...The value of your Fixed Index Annuity, including any previously credited interest, will not go down when the market index declines. Once interest is credited it is locked in whether future market index performance is positive or negative.

According to a recent study, twice as many baby boomers prefer a product that provides a guarantee not to lose their retirement savings over a product with higher return. For growth potential without the threat of loss due to market declines, consider putting your retirement savings in a Fixed Index Annuity.

How Heavy Is Your Glass of Water?

A young lady confidently walked around the room while leading and explaining stress management to an audience with a raised glass of water.

Everyone knew she was going to ask the ultimate question, 'half empty or half full?'...

She fooled them all ... "How heavy is this glass of water?" she inquired with a smile.

Answers called out ranged from 8 oz. to 20 oz.

She replied, "The absolute weight doesn't matter.

It depends on how long I hold it.
If I hold it for a minute, that's not a problem.
If I hold it for an hour, I'll have an ache in my right arm.
If I hold it for a day, you'll have to call an ambulance.

So, as early in the evening as you can, put all your burdens down. Don't carry them through the evening and into the night... Pick them up tomorrow.

In each case it's the same weight, but the longer I hold it, the heavier it becomes." She continued, "and that's the way it is with stress.

If we carry our burdens all the time, sooner or later, as the burden becomes increasingly heavy, we won't be able to carry on."

"As with the glass of water, you have to put it down for a while and rest before holding it again. When we're refreshed, we can carry on with the burden - holding stress longer and better each time practiced.

AND REMEMBER...

1 * Accept the fact that some days you're the pigeon, and some days you're the statue!

2 * Always keep your words soft and sweet, just in case you have to eat them.

3 * Always read stuff that will make you look good if you die in the middle of it.

4 * Drive carefully... It's not only cars that can be recalled by their Maker.

5 * If you can't be kind, at least have the decency to be vague.

6 * If you lend someone $20 and never see that person again, it was probably worth it.

7 * It may be that your sole purpose in life is simply to serve as a warning to others.

8 * Never buy a car you can't push.

9 * Never put both feet in your mouth at the same time, because then you won't have a leg to stand on.

10 * Nobody cares if you can't dance well. Just get up and dance.

11 * Since it's the early worm that gets eaten by the bird, sleep late.

12 * The second mouse gets the cheese.

13 * When everything's coming your way, you're in the wrong lane.

14 * Birthdays are good for you. The more you have, the longer you live.

15 * Some mistakes are too much fun to make only once.

16 * We could learn a lot from crayons. Some are sharp, some are pretty and some are dull. Some have weird names and all are different colors, but they all have to live in the same box.

17 * A truly happy person is one who can enjoy the scenery on a detour.

18 * Have an awesome day and know that someone has thought about you today.

AND MOST IMPORTANTLY

19 *Save the earth..... It's the only planet with chocolate!

Women Face 'Glass Ceiling' in Retirement

from "Life Health Pro"

No doubt women have made significant progress in controlling their own financial destiny. Yet despite those advances, they still lag men in retirement savings by a wide margin.

Women now control 27 percent of the investable assets worldwide and more women out-earn their husbands (29 percent in 2009 versus 18 percent in 1987), reports the Insured Retirement Institute (IRI) in a recent study, "Women and Retirement: Overcoming Retirement Income Challenges Facing Women."

Yet because women are more likely to take more time out of the workforce for caregiving duties, women save between 25 percent and 30 percent less than men for their retirement over a 30-year period. That's compounded by a persistent wage gap that sees women earning 80 cents for every $1 a man does, according to the IRI, citing the U.S. Bureau of Labor Statistics.

IRI president and CEO Cathy Weatherford said in a release detailing the study that those lost wages lead many women to hit "a retirement income glass ceiling" that limits their ability to fund their golden years in comfort.

Among the report's findings:

*While half of boomer men have saved at least $200,000 for retirement, only 35 percent of boomer women have put away as much.

*About a third of baby boomer women say they do not know when they will retire, and 43 percent expect to retire at age 65 or later.

*Only four in 10 women age 55 and older believe they have done a good job planning for a financially secure retirement, while a quarter say they have little to no confidence in how they have shaped their retirement plans thus far.

Social Security

Forty-four percent of boomers anticipate that Social Security will be a major source of their retirement income. And more than a third (38 percent) of boomer women say a defined benefit (DB) plan will provide most of their retirement funds.

But with fewer private-sector pensions, boomer women again face a deficit in funding a secure retirement. The IRI points to a 2010 study from the Employee Benefits Research Institute that found only 17 percent of women age 65 or older received income from a private sector defined benefit plan.

According to IRI's research, 42 percent of boomer women envision a defined contribution (DC) plan contributing the lion's share of funds for her retirement. But even with a DC available at work, women are under-saving. Using a study from Vanguard, the IRI report notes that in 2011, the average DC account balance for a woman was $59,104 compared to $94,063 for a man.

Two Challenges

Women, the report points out, face two major challenges in retirement: increased longevity (an average of three to four years longer than men) and higher health-care costs. According to the IRI report, a 65-year-old woman can expect to pay 13 percent more than a man for health-care expenses, including premiums, during retirement. Women are more likely to need nursing home care as well.

However, according to the IRI report, only a third of baby boomer women are confident they will have enough money to fund their health-care expenses during retirement, compared to 41 percent of boomer men.

Even in light of the shortfalls, more than half-53 percent-of boomer women have not consulted a financial advisor, the IRI report reveals.

When looking for retirement income products, women favor guaranteed income each month (18 percent), recommendations by a financial advisor (17 percent) and rate of return (15 percent).