Generating Ongoing Income in Retirement Doesn’t Have to Be Complicated
While you may or may not have enjoyed math and science in high school, these two concepts come into play in a wide variety of situations – including the basics of retirement income planning.
But the good news is that most of the heavy lifting has already been done for you – at least when you use an annuity (or more than one annuity) in your overall retirement income generation plan.
Pulling Back the Curtain on Retirement Income Techniques
If you have been working with a financial advisor on putting together a retirement income plan, it is likely that he or she has told you that they use a “customized” technique for creating the right plan for you.
They may also have told you that they don’t sell “products,” but rather they use a process that takes your needs and wants into consideration. In this case, your needs may be covered using an income “floor,” while the non-essentials like travel and fun might be paid for using income that may or may not be generated with more growth-oriented financial vehicles like stocks.
Some advisors even use cute little metaphors or other catchy phrases for these “one of a kind” income plans that they create. The reality is, however, that most of them are doing the very same thing. But this isn’t necessarily bad. In fact, just the opposite – because there really is only one optimal way to generate a guaranteed lifetime income in retirement.
And that is by using an annuity.
The Problem with Traditional Retirement Income Plans
Not all financial professionals will agree with this method of using an annuity to guarantee lifetime income. In fact, there are some who will even go so far as to say that they HATE annuities…and that you should too!
Instead, many of these advisors opt to go with an investment-only “solution” to retirement income. But according to some experts, this method can have some substantial flaws – which, by the way, is not something you want to find out after you’ve retired.
This is especially the case following the significant stock market drop that occurred in March 2020 during the Coronavirus pandemic. For instance, according to Dr. Michael Finke, PhD, CFP, and Professor of Wealth Management at The American College of Financial Services, investment-related retirement income plans went from a 94% probability of success down to just 63% in a period of just three weeks.
So, is this something that you really want to base your financial future on?
Securing Your Retirement Income Floor
Creating a retirement income plan can involve a number of moving parts. But it is definitely something you want to get right, because, in this area, there are no do-overs. If you’d like to learn more about how annuities can help you to create a solid and reliable foundation for your income in retirement, Annuity Gator can help.
At Annuity Gator, our mission is on educating consumers and financial professionals on how annuities may fit both before and during retirement. So, feel free to reach out to us any time at (888) 440-2468, or via email through our secure online contact form. We look forward to hearing from you.