What is Income for Life?

Most people who think about retirement income for life immediately think about Social Security and possibly a pension. However, you can use annuities to create a lifetime of income that you, or you and another person, cannot outlive. Also, you can also use annuities to create retirement wealth safely.

What that means is

Live out your retirement with confidence, knowing your income is protected, regardless of another market downturn. In a goals-based retirement plan, it’s not about the money; it’s about what the money can do for you. There are no do-overs or second chances in retirement.

Would another pension-like income help?

People who retire successfully focus on what their money can for them, not on how big their pile of money is. Most of all, they are focused on satisfying their goals, needs, and objectives, not on trying to make x percent that cannot be guaranteed. They know the only thing worse than dying would be outliving their money.

So how do you solve the problem?

When planning for income for life from an annuity, there are two ways to approach it

1. Income Now – Receiving an immediate income.
2. Income Later – Receiving income in the future.

Retirement is a BIG DEAL

When you retire you have three choices:

1. Chase x percent return which cannot be guaranteed by your bank or broker.
2. Buy income for life to supplement your Social Security check.
3. Do both.

You may find that knowing you have ample income for life coming in will help you manage your other assets more effectively because you know that paycheck will never decline due to market volatility.

We help you think about your money

When it comes to safe lifetime annuity income there are four solid choices:

• A Single Premium Immediate Annuity (SPIA).
• A Deferred Income Annuity (DIA).
• A Qualified Longevity Annuity Contract (QLAC).
• An income rider attached to a fixed annuity.

Some Income Annuities are older than Social Security

Before Social Security was signed into law in 1935 and payments began in 1940, annuities were used to provide income. Today, if you are retired and receiving a Social Security check, that payment is similar to getting a lifetime income from something like an income annuity. If you are still working, the FICA tax you pay goes to Social Security, a program like an income annuity.

The best part is

Income annuities from an insurance company are the only thing we know of that you can buy that can pay a contractually guaranteed lifetime of income for you or you and another person. Guarantees are backed by the financial strength and claims-paying ability of the insurance company or companies you chose. Also, you can select shorter income payout terms than a lifetime payout.

How much should I put into an income annuity?

You should put as little as possible into an annuity to meet your income needs. If you have $100,000 to work with and $56,729 is all you need to deposit to get your income to where you want it to be, then pay the exact amount, keep the rest. Guess what? The balance, in this case, $43,271, can be saved for your future needs.

Start at the Finish

The best way to buy income using an annuity is with the end result in mind. Start with a budget. Set some goals or perhaps create a bucket list. Figure out how much you need on a monthly basis to cover your lifestyle. Subtract out Social Security and pension. You might want to purchase an additional income from an annuity to cover some or all of the remaining expenses.

The key to figuring it out is

If you are like most people, you probably need additional information to help you plan your retirement lifestyle and determine if a Qualified Longevity Annuity Contract is right for you. As a Bonus, we have created a guide to help you called “Start at the Finish Line.” It contains information to help you set goals and plan for the retirement lifestyle that you are looking for.

In Conclusion:

You can purchase an income annuity to provide yourself a pension like income for life, that starts immediately or at some point in the future (or a for a shorter period if desired). An income annuity can provide additional income beyond a check from Social Security and a pension. If you do not have a pension and would like a pension-like income for life, an income annuity can become your private or personal pension or a do-it-yourself pension.

Finally

If are at or near retirement and you have any questions or need a little guidance, feel free to contact us. We know retirement planning can be confusing, so it is important to get the facts before you make any long-term decision.