“I want guaranteed retirement income but I don’t want to lose any principal”.
If you are tired of seeing your retirement assets whipsawed by the market, there are alternative solutions to eliminate risk.
People want guaranteed, lifetime income as they transition into retirement. Which is better in retirement, asset accumulation or guaranteed, lifetime income? In my opinion, for most people, it is both. Before retirement, we focus on growing our assets because time is on our side while we are still earning income. It also benefits us because more assets means more future income. It is why the income base component of an indexed annuity is so important.
Decumulation is a fancy word for the distribution phase of retirement. Is it advantageous to remain focused on asset accumulation, in retirement? More and more economists and retirement professionals are suggesting that we change our focus from asset accumulation to asset protection and guaranteed, lifetime income. Professors and economists have begun asking us to re-think the conventional wisdom concerning asset accumulation versus lifetime income. Like everything in financial planning, each person’s circumstances are unique and it is this uniqueness that drives individual product decisions. Factors such as succession and health all play a role in how much of our retirement assets should be converted to income. This is why many people use the assets in their IRA to purchase income contracts. Once this has been determined, using the right annuities is important:
“Equities, nor bonds, provide guaranteed income for life. Income annuities do guarantee that you will never lose principal. For retirees who want to protect IRA assets and other retirement assets from market loss, you will be surprised by how much income they generate. Indexed annuities do two important things every investor wants. They protect the downside and they share in the upside when indexes increase in value.
You can reach us at 561-869-4500 or email Ted to arrange for a complimentary consultation. If you are tired of seeing your retirement assets being whipsawed in the markets, let’s talk.
Also published on Medium.