There are just a couple of things almost all Alexandria Real Estate Equities retirees need when they hit retirement: predictable income and protection against a cluster of risks, which include longevity risk, performance risk and sequence-of-returns risk.
In the past we have seen retiring Alexandria Real Estate Equities employees utilize the “4% rule,” where retirees take annual withdrawals start at 4% of the entire portfolio and increase with inflation. They then keep the remainder of the portfolio with at least 50% invested in equities. Based on historical data, this would give a Alexandria Real Estate Equities retiree about 30 years of retirement income.
As the economy constantly changes, a number of factors may force prospective Alexandria Real Estate Equities retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.
As life expectancies increase, Alexandria Real Estate Equities retirees need to prepare for expenses over a longer time frame. In the past we would plan for a 15 to 20 year retirement, but now we need to prepare for a 30 to 35 year retirement. What is available to assist meeting the 35-year time frame?
The annuity strategy can assist with a few of the pitfalls we see in the 4% rule. For example:
If you need $50,000 per year in retirement and need that for 30 years, you may need $1.2 million in fixed income at a 3% interest rate. BUT if you look to fund $50,000 for 30 years, you can cover that expense with $800,000 by choosing the annuity option.
The other pitfall with the 4% rule is that it may not reflect a client’s risk tolerance. When you are accumulating assets, you can afford more volatility and can take on more risk than when in the retirement and withdrawal phase after leaving Alexandria Real Estate Equities.
Also, should we see a drop in the market, you would be able to reduce your income using the 4% rule, which you cannot do if you choose an annuity option.
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
What type of retirement plan does Alexandria Real Estate Equities offer to its employees?
Alexandria Real Estate Equities offers a 401(k) retirement savings plan to its employees.
How can employees of Alexandria Real Estate Equities enroll in the 401(k) plan?
Employees of Alexandria Real Estate Equities can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.
Does Alexandria Real Estate Equities offer a company match for its 401(k) contributions?
Yes, Alexandria Real Estate Equities provides a company match on employee contributions to the 401(k) plan, subject to certain limits.
What is the maximum contribution limit for the 401(k) plan at Alexandria Real Estate Equities?
The maximum contribution limit for the 401(k) plan at Alexandria Real Estate Equities aligns with the IRS limits, which are updated annually.
Can employees of Alexandria Real Estate Equities take loans against their 401(k) balances?
Yes, employees of Alexandria Real Estate Equities may have the option to take loans against their 401(k) balances, subject to the plan's specific terms and conditions.
What investment options are available in the Alexandria Real Estate Equities 401(k) plan?
The Alexandria Real Estate Equities 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Is there a vesting schedule for the company match in the Alexandria Real Estate Equities 401(k) plan?
Yes, Alexandria Real Estate Equities has a vesting schedule for the company match, which means employees must work for a certain period to fully own the matched contributions.
How often can employees change their contribution amounts to the Alexandria Real Estate Equities 401(k) plan?
Employees of Alexandria Real Estate Equities can typically change their contribution amounts at any time, subject to the plan's rules.
What happens to the 401(k) plan if an employee leaves Alexandria Real Estate Equities?
If an employee leaves Alexandria Real Estate Equities, they have several options regarding their 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it with the current plan.
Does Alexandria Real Estate Equities provide educational resources for employees regarding their 401(k) plan?
Yes, Alexandria Real Estate Equities provides educational resources and tools to help employees understand their 401(k) plan options and make informed decisions.
-2.png)
.webp)