Here's 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.  The decision to self mange your retirement wealth can be risky business.  Would you like to see a safe way others are choosing? 

Below are quotes from the article to help our discussion today.

"Annuity sales are exploding higher as retiree's look to lock up guaranteed lifetime income"  

"Lifetime income has emerged as perhaps the biggest retirement challenge of our age."

"The push is on to help these retirees convert their 401(K) and IRA savings to a guaranteed income stream."

"In a sign of wise planning, easy-to-understand basic income annuities are among the greatest growing of these insurance products."

"In all, net annuity sales reached $56,1 Billion in the first quarter"

"Meanwhile, net sales of fixed annuities, which offer more certain returns, surged to levels last seen in the rush to safety at the height of the Great Recession-totaling $22.6 billion for the quarter."

Immediate annuities are what most investors think of when they ponder buying and 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 fixed annuity, called a deferred income annuity or longevity annuity, lets you put down a lump sum in return for income that starts years later--think of it as a form of insurance for old age."

I had a client in my office this week 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 guarantee's 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 was 62 and single, she had received a pay check each month and she and wanted the same dependable monthly income in retirement.  She had saved well and wanted safety. An immediate income annuity was her solution with money coming in now and protection for peace of mind. 

Another important decision is when to retire.  An annuity can help with that decision.  You may be able to retire now or know when is the best time with guaranteed money in your mailbox each month.

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 their really is no gamble.  But you need to make sure your product has these built in guarantees as not all annuities are created equal. 

Another concern for many is turning some their money over to an insurance company.  I've seen insurance companies pay claims for the past 35 years. Insurance companies are considered one of the safest places 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 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 concerns.

Cory Payne

Beehive Insurance Retirement Planning Services

cpayne@beehiveinsurance.com

801-685-6860