The Fiscal Cliff & Retirement Financial Advisor Todd Wellnitz Alameda California

One of the biggest risks that retirees and pre-retirees face is that of taxes; not just paying them but the risk that tax policy will change and negatively affect your retirement plans.

Well, that risk—in the form of the fiscal cliff—is now upon us and retirees and pre-retirees must now develop a plan of action for their portfolio should all, some, or none of the scheduled tax changes and spending cuts become a reality on Jan. 1.

Todd Wellnitz...of Wellguard Insurance Solutions in Alameda California says "Get with your advisor and discuss re-balancing your assets and look at some ways to defer taxes."

Pension Payout Strategies - Financial Retirement Advisor Todd Wellnitz Alameda California

Most traditional corporate pension plans only allow you to take your benefits as an annuity, or a series of monthly payments for the rest of your life (or long as your spouse is alive). But more companies, including such biggies as GM and Ford, have begun offering employees and/or retirees the choice of a lump sum. Financial retirement advisor Todd Wellnitz in Alameda California suggests the safest option may be taking a lump sum and purchasing a fixed annuity to create guaranteed lifetime income.

Concerns for women in retirement planning

Women's retirement planning study: Annuity agent Todd Wellnitz, Alameda California

The good news for women: they live longer, so they will have longer to enjoy their retirement. The bad news: they live longer, and so their retirement will be much more expensive than for their male counterparts.

Women tend to outlive their husbands. Only one-third of women over sixty-five are married, and on average women will survive their husbands by fifteen years.

The combination of being on their own and living longer means that women need far more retirement income than do most men.

Are CD's Good Retirement Investments? Todd Wellnitz, Alameda California

CD's are safe, FDIC insured investments. That being said...interest rates these days don't offer much of a return. For those investors seeking to eliminate risk but still have an upside potential, Todd Wellnitz suggest a fixed index annuity as an option. These products provide growth potential and manage risk. They also can provide income for life.

Annuity Can Cut Taxes On Your Social Security: Annuity Agent Todd Wellnitz

For most retirees living on a fixed income, every penny counts. Unfortunately for them, every penny counts to the Internal Revenue Service, too. Retirees whose income — including half of Social Security benefits plus unearned income such as tax-exempt interest from municipal bonds — exceeds the IRS threshold can find their Social Security benefits are subject to tax.

There are ways retirees can get their income under the threshold and reduce taxes on Social Security.

Many retirees have money set aside to pass on to heirs or give to charity. They don't immediately need the income.  To reduce income, and the accompanying taxes, retirees can take the money and put it into a fixed index annuity and reduce or elimibnate the Social Security tax entirely.

Todd Wellnitz of Wellguard Financial Solutions in Alameda California says "putting the money in an annuity allows you to defer the income until you need it."