How do I…

Save enough for what’s ahead?

You don’t know what the future has planned for you, but you want to be prepared for the unexpected and be able to achieve your goals. Maybe you want to travel. Open a business. Or simply enjoy the fruits of your labor. Life is full of unknowns and surprises, but by saving now, you'll be prepared for whatever life has in store.

Start Building Confidence in Your Financial Future

When it comes to reaching your goals, your needs are unique. Your financial professional will be able to help you evaluate your options and design a plan around your goals. Start exploring how you can save enough for your future.

How will inflation affect my cost of living?

In 1958, the average cost of a movie ticket was 68¢. Today, it’s more than $8.001. That’s inflation. Over time, inflation tends to push the cost of goods and services higher. That’s why it’s important to consider financial strategies that will help your savings keep up with the cost of living. Your financial professional can help.

http://www.natoonline.org/data/ticket-price/, retrieved 7/6/2018

How will market participation affect my savings?

The financial markets are impossible to predict, and a market loss can affect your ability to live a comfortable lifestyle down the road. That’s why it’s important to diversify among a number of different investments and financial products. It’s like the old saying, “Don’t put all your eggs in one basket.” Diversification may help you gain when markets rise and protect you when they fall. In addition, diversification does not guarantee future results, ensure a profit, or protect against loss. Your financial professional can help.

When will changes in the market affect me most?

Markets rise, markets fall, and no one can accurately predict when. If you have lots of time ahead of you, chances are you will have the opportunity to rebound from market losses as the year’s progress. But if markets fall while you liquidate retirement assets for income it can have a significant impact on your retirement security. One way to protect against this is to diversify your assets among a variety of financial products, including some that are not affected by market downturns. Your financial professional can show you how.

How much can I expect to get from Social Security?

Social Security can be a great foundation for a long-term financial strategy. But for many, Social Security alone is not enough to provide a comfortable lifestyle. That’s why building your savings is so important. It’s the combination of your Social Security and savings that will determine the level of financial freedom you’ll have during retirement. To find out more about how much Social Security you can expect, visit the My Social Security website to get your personal Social Security statement: https://www.ssa.gov/myaccount/

 

How much can I contribute to my IRA?

The IRA contribution limits change from time to time. In 2018, you may contribute a total of up to $5,500 per year to all your IRAs ($6,500 if you’re age 50 or older). However, you cannot contribute more than your annual earnings. So if those earnings are below $5,500, you can only contribute up to the amount you made.

Source: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

How do I know if an IRA (Individual Retirement Account) is the right solution for me?

When the goal is to build long-term savings, many investors think of contributing to an IRA because it enables savings to grow faster through the power of tax deferral. However, there are also other tax-deferred options available to investors, including your employer’s 401(k) plan, annuities, and other vehicles. Before investing your hard-earned money, ask your financial professional about the features and benefits of the various tax-deferred plans, and select the one or ones that best suit your personal situation, needs, and goals.

How may I keep more of my investment earnings?

Taxes can impact how quickly your savings grow. Taxes can also impact how much you get to keep once you begin taking income. Distributions from annuities, IRAs, qualified retirement plans like 401(k) plans, and pension plans are generally taxed at income tax rates. Assets outside retirement plans like stocks, mutual funds, and real estate are generally taxed at capital gains tax rates. There is an often overlooked source that offers tax-free income—from sources such as Roth IRAs, municipal bond interest, and cash value life insurance death proceeds, loans, and withdrawals.

What if I live longer than expected? How long do I need my savings to last?

Will I have enough assets and income for a long retirement? No one can predict how long they’ll spend in retirement, but many people today live well into their 70s, 80s, and even 90s. That’s why it’s important to have financial products that help you grow your money as much as possible and, down the road, turn it into income that can last your entire life.

What if I die too soon?

Without my income, how will my family pay the bills? You may see life insurance as an expense—financial protection for your families at the cost of premiums paid. What you may be missing is that life insurance can be part of a diversified retirement strategy, providing valuable financial protection against premature death now, and the opportunity to build a source of supplemental retirement income later. Life insurance may be especially attractive for high-income earners who may face contribution caps on qualified retirement plans and need help saving enough for retirement.

Are there other ways I can optimize my portfolio for tax efficiency?

Yes, when it comes to saving for retirement, there are variety of tax considerations including annual contribution limits to qualified retirement plans, tax deductibility of contributions, tax-deferred growth potential, taxation of income (including capital gains and dividends), early penalty taxes for early withdrawals, and taxation of death proceeds. Your financial professional and tax advisor can help determine which options are right for you.

What is a retirement income strategy?

During our professional careers, investing is mostly about growing the amount of money we have. But when we retire, the emphasis often shifts to the goal of creating income. Specifically, how might we ensure our assets will provide enough income throughout the rest of our years to support a life that’s meaningful to us? Your financial professional can help you determine how much income you may need and how to create a strategy to meet your goals.

Products To Help You Save

Variable Annuity

A variable annuity is designed to provide reliable monthly income that lasts for life. It is a long-term investment that can help you grow your retirement savings faster by investing in a diverse selection of investment options while deferring taxes until you take income. The market-based investment performance will be variable, meaning it can go up or down. Variable annuities also allow you to provide for loved ones through a guaranteed death benefit.

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Fixed Indexed Annuity

A fixed indexed annuity is designed to provide reliable monthly income that lasts for life. It protects your principal, while providing growth opportunity based on the positive movement of an index, such as the S&P 500® index. Fixed indexed annuities enable you to grow your retirement savings faster by deferring taxes until you take income, creating lifetime income, and providing for loved ones through a guaranteed death benefit.

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Fixed Annuity

A fixed annuity can help you create reliable monthly income that lasts for life. It is designed to protect your principal while providing steady, reliable growth based on a fixed rate of interest. Fixed annuities also enable you to grow your retirement savings faster by deferring taxes until you take income, creating income that lasts for life, and provide for loved ones through a guaranteed death benefit.

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Mutual Funds

Offers the opportunity to meet savings goals by growing money through a professionally managed portfolio of market-based investments (e.g., stocks, bonds, and more).

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Cash Value Life Insurance

Offers death benefit protection with tax deferred cash value build up, and ability to access the cash value via policy loans and withdrawals. 

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Plan now, so you’re ready later

For you, family is one of the most important things in your life. You take care of them. They take care of you. Making sure that they’ll always be taken care of, no matter what happens.

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Retirement income

Being happily retired looks different for everybody. Maybe you want steady retirement income that lasts or supplemental income to help you meet the unexpected in life.

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Plan now, so you’re ready later

For you, family is one of the most important things in your life. You take care of them. They take care of you. Making sure that they’ll always be taken care of, no matter what happens.

LEARN MORE

Retirement income

Being happily retired looks different for everybody. Maybe you want steady retirement income that lasts or supplemental income to help you meet the unexpected in life.

LEARN MORE

Protect and grow my business

You want your business to maintain its competitive edge. Attracting talent and building a succession plan for the future means you can ensure your business stays in stable hands.

LEARN MORE

Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company and do not protect the value of the variable investment options, which are subject to market risk.

This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life, its affiliates, their distributors and respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.

Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge and a market value adjustment (MVA) also may apply. Withdrawals will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits.

Under current law, a nonqualified annuity that is owned by an individual is generally entitled to tax deferral. IRAs and qualified plans—such as 401(k)s and 403(b)s—are already tax‑deferred. Therefore, a deferred annuity should be used only to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. These include lifetime income and death benefit options.

All investing involves risk, including the possible loss of the principal amount invested. The value of the variable investment options will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please see the prospectus for a detailed description of investment risks.

Pacific Life, its affiliates, their distributors and respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.

Pacific Life's Home Office is located in Newport Beach, CA.

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