How Life Events Shape Financial Decisions: An Introduction
June is Annuity Awareness Month, and we’re kicking off a special series on how significant life events can shape your financial journey. Life changes—like nearing retirement, career shifts, market volatility, or receiving an inheritance—often prompt a reassessment of financial priorities. In these pivotal moments, annuities can offer essential stability and direction, helping align your financial plan with your changing priorities.
Why Life Events Matter
Life events naturally encourage deeper financial reflection by:
- Increasing awareness of potential financial vulnerabilities
- Encouraging active pursuit of financial solutions and guidance
- Providing access to funds needing strategic management
- Opening minds to new financial approaches
- Highlighting the importance of professional expertise
Major life transitions disrupt our automatic patterns and force us to make deliberate choices about our future. This makes life events powerful catalysts for meaningful financial decisions.
Key Life Events that Trigger Financial Reassessment
- Approaching Retirement (5-10 Years Before)
Your focus typically shifts from wealth accumulation to preserving and protecting your assets while still achieving potential growth. - Market Volatility
Uncertain financial markets heighten anxiety around retirement security, often prompting a search for solutions balancing growth potential and reducing risk. - Inheritance or Financial Windfall
Receiving sudden wealth through inheritance or asset sales demands careful management of the new assets. Thoughtful strategies are necessary to balance immediate needs, preservation, growth, and tax efficiency. - Career Transitions
Job changes or early retirement opportunities naturally create openings to reassess your financial strategies and realign them with your new situation.
Navigating Life Events Strategically
Each life event is unique, but the following principles can guide your decision-making:
- Pause before acting: Emotional responses are common; take time to understand both the emotional and financial impacts before making major decisions.
- Seek qualified guidance: Professional financial advice can be especially valuable during complex life transitions.
- Reassess your timeline: Adjust your investment time horizon and strategy as your circumstances evolve.
- Balance protection and growth: As your priorities change, ensure your financial strategy adequately addresses both safety and growth potential.
- Think long-term: Ensure short-term decisions also support your broader, long-term financial goals.
Annuities as Solutions During Life Transitions
Annuities can specifically address evolving financial needs by providing:
- Principal protection to safeguard accumulated savings.
- Tax-advantaged growth to build retirement assets efficiently.
- Guaranteed lifetime income for predictable, long-term security.
- Simplified wealth transfer to facilitate effective estate planning.
Fixed Indexed Annuities (FIAs) are designed to offer a combination of principal protection and index-linked growth potential—features that may appeal to individuals adjusting their financial strategies due to life changes.”
In the coming weeks, we’ll explore specific life events in greater detail, examining how they typically affect financial priorities and which strategies can best address those evolving needs. Next week, we’ll dive into the pre-retirement phase, exploring how to create stability in your final working years while still maintaining growth potential.
Discover the Oceanview Difference
- Financial Strength: “A” (Excellent) rating from A.M. Best, showcasing our solid financial foundation, providing you with confidence regarding Oceanview’s commitment to meeting obligations.
- Transparency: Clear and straightforward annuity products tailored to your retirement objectives.
- Competitive and Flexible: Attractive rates, various durations, and diverse crediting strategies.
- Client-Focused Features: Free withdrawals, nursing home, terminal illness waivers, and full liquidity for beneficiaries upon the annuitant’s death demonstrate our commitment to your financial security and peace of mind.
Disclaimers
Guarantees are based on the financial strength of the issuing carrier. The multi-year guarantee annuity product with form number IIC19 OLA SPDA, or variations of such, are issued by Oceanview Life and Annuity Company (d/b/a Oceanview Life and Annuity Insurance Company in California; NAIC# 68446). May not be available in all states. Not available in the state of New York or Vermont. Policy form numbers and provisions may vary. Rates are guaranteed depending on the guarantee period selected at policy issue.
Guarantees are based on the financial strength of the issuing carrier. The Single Premium Fixed Indexed Annuity Contract [ICC19 OLA FIA], or variations of such are issued by Oceanview Life and Annuity Company (d/b/a Oceanview Life and Annuity Insurancey Company in California). May not be available in all states. Not available in the state of New York or Vermont. Product features, limitations and availability may vary.
HARBOURVIEW ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY THE FDIC OR NCUA/NCUSIF OR ANY OTHER FEDERAL GOVERNMENTAL AGENCY. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT. GUARANTEES ARE SUBJECT TO THE CLAIM PAYING ABILITY OF THE ISSUING INSURANCE COMPANY.
Annuities are generally designed as long-term retirement solutions and have certain limitations. They are generally not intended to replace emergency funds, serve as income for day-to-day expenses, or support short-term savings goals. Please review the contract for full details.
Annuities issued by Oceanview Life and Annuity Company, 1819 Wazee Street, 2nd Floor, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.
A.M. Best Rating as of December 11, 2024, is subject to change. A (Excellent) rating is third highest of fifteen possible rating classes for financial strength. The outlook assigned to these Credit Ratings is stable.
This material is a general description intended for general public, educational use. Oceanview Life and Annuity Company is not providing investment advice for any individual or in any individual situation, and therefore nothing in this correspondence should be read as such.
Neither Oceanview Life and Annuity Company nor any of its representatives may provide tax or legal advice.
Withdrawals in excess of any Free Partial Withdrawal amounts are subject to a Surrender Charge and Market Value Adjustment (MVA). The MVA may have the effect of increasing or decreasing the Surrender Value of the withdrawal depending on the market interest rate changes.
The IRS may impose a penalty for withdrawals prior to age 59 ½.
Contracts purchased in an IRA or other tax-qualified plan provide no additional tax-deferral benefit, since they are already afforded tax-deferred status. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.
While care was taken in compiling this information, the Company reserves the right to correct any typographical errors that may exist.
Rates, renewal caps, and declared interest rates, will always follow contract provisions relative to minimums and maximums stated. Oceanview determines, at its discretion, the rates, renewal caps and, declared interest rates above the contractual minimums that are guaranteed.
Funds allocated to an index do not directly participate or invest in the stock market or any index.