The Hottest Thing out there for Retirement Income

Need Retirement Income?
Here is the Hottest Thing out There.

The above title is not mine; it’s a headline from a TIME Magazine article dated June 16, 2014 by Dan Kadlec. I’d like to use this retirement income article as a basis for our discussion today.

Secure Your Retirement Income

It’s 2014, and the decision to self-manage your retirement wealth can be risky business. In his article, Kadlec says that lifetime retirement income has emerged as perhaps the biggest retirement challenge of our decade. Would you like to see a safe retirement management option others are choosing?

According to Kaldec:

  1. Annuity sales are exploding higher as retiree’s look to lock up guaranteed lifetime income.
  2. The push is on to help these retirees convert their 401(K) and IRA savings to a guaranteed income stream.
  3. In a sign of wise planning, easy-to-understand basic income annuities are among the greatest growing of these insurance products.

Immediate annuities are what most investors think of when they ponder buying an income stream. With an immediate annuity you plunk down cash and begin receiving pre-set guaranteed income over a period of, say 10 or 20 years, or life.

Another type of popular fixed annuity is called a deferred income annuity or longevity annuity. This retirement vehicle lets you put down a lump sum in return for income that starts years later. It’s basically a form of insurance for old age.

The type of fixed indexed annuity that will be right for you is dependent on your age and retirement plans.

Real People – Real Retirement Income

This past week, I had a client in my office to discuss his retirement strategy. At age 60 he’s done very well for himself and expects the same during retirement. For him, the solution was a deferred income annuity starting at age 66 which guarantees he and his wife will have healthy retirement income for the rest of their lives.

Another client came in wanting guaranteed income to start now. She is 62 and single. For years, she had received a pay check each month and she wanted the same dependable monthly income in retirement. She had saved well and wanted safety in retirement. An immediate income annuity was her solution for retirement income. This allowed her to have money coming in now and protection for peace of mind.

Another important decision many baby boomers are starting to face, is when to retire. An annuity can help with that decision. You may be able to retire now or seeing your options, know when is the best time to retire to ensure your expected levels of retirement income. Check out our Retirement Calculators to get a better idea of the amount you’ll need to secure a comfortable retirement income.

Retirement Income Concerns

Some people seem to consider buying an annuity as a gamble, in which one has to live a certain number of years to break even. With the guarantee of any remaining principal, interest and bonus income being returned to beneficiaries, there really is no gamble. Talk with an income retirement specialist when choosing an annuity product, to make sure you are getting these guarantees, as not all annuities are created equal.

Another concern for many prospective retirees is turning¬†their money over to an insurance company. If you’re working with a trusted agency, this should not be a concern. I’ve seen insurance companies pay claims for the past 35 years. Insurance companies are considered one of the safest organizations to place your money.

I thought I was in control of my retirement with conservative investments in my 401K when the Great Recession took 42% of my nest egg. I value the security offered by these A rated insurance companies.

The decision of self-managing your retirement wealth can be risky business. I recommend insuring a successful retirement income with a portion of your retirement savings placed with a strong insurance carrier.

Please let me know if you’d like a free no pressure consultation about your retirement income concerns.

Cory Payne
Beehive Insurance Retirement Planning Services