Total Financial Solutions President and CEO Arif Halaby encourages retirement planning options for Santa Clarita residents.

One of the products people put money into is called a mutual fund where a group of people team up to have greater purchasing power. This usually allows individuals to get better deals within a higher number of stocks than when they would have done it on their own.

There are also two different work plans, which are the 401k and the 457 Deferred Compensation accounts.

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These accounts depend on the type of industry you work in. If you work for a for-profit company, you’re eligible for a 401k account.

The other work-related retirement account is the 457 Deferred Compensation. This account is popular in government, city, state or county agencies.

Either way, “The objective is to save consistently,” said Halaby.

Other retirement tools consist of annuities.

“What if you have saved enough money and you’re ready to retire and start pulling money out?” asked Halaby.

Annuities can be a part of that process and can provide a level of safety.

“There are three types of annuities where one out of three have fees for sure, another one maybe half the time, and the other one doesn’t have any,” explains Halaby.

With a variable annuity, the investments you choose may decline and so can the value of your annuity—creating a lower payout with lots of fees.

Halaby explains that other annuities typically have similar benefits, with less or no fees.

“You could have guarantees where there’s income you could never outlive. You might lose the chunk of money but the monthly or annual income you receive could be there forever—certainly a benefit,” said Halaby.

With a fixed annuity, often called a hybrid annuity, “You put in a fixed amount and at the end of five or 10 years, it’s going to be worth a certain amount,” said Logan Halaby, Arif Halaby’s son and co-host on  “Total Financial Solutions Safer Money Hour” on KHTS AM-1220.

A fixed annuity is useful when you’re looking for something long term and there’s no immediate need for it.

“If a storm comes along and you need a new roof, this isn’t the money for that. This is set aside for a longer term,” said Logan.

With fixed index annuities, “You have the potential to get higher returns,” said Halaby. “But you could also get a zero if the market goes negative—you’re not going to lose money, you just don’t gain anything.”

The rate of return is usually between 0 and 12 percent and there’s a time commitment.

The best timelines for fixed indexed annuities are of seven, 10 or 12 years, depending on individual situations and goals.

“As we start to get older, we can’t afford losses,” said Halaby. “When you have these accounts, you have to know what you have, and know why you have it.”

Because each individual person’s financial circumstances and situation is different, Halaby advised enlisting the help of a professional like himself in determining the best way to plan for retirement, be that through an annuity or other avenue.

“If you need help, you can give us a call,” said Halaby. “Feel free to come by anytime if you have questions. I’m here for you.”

Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344

Total Financial Solutions – Newhall

https://www.youtube.com/watch?v=g9S4orbb9is

Arif Halaby, Total Financial Solutions, Financial Planning, Planning for Retirement, Retirement Planning