Rising interest rates, pressure on Social Security, unpredictable markets and longevity risks are making annuities ever more attractive as a part of retirement planning.
New legislation raises the amount you can transfer from your rollover IRA to a qualifying longevity annuity contract (QLAC), reducing RMDs and increasing guaranteed lifetime income.
Predictions about what the markets will do or how the economy will perform are often wrong. That’s why it’s better to “prepare” rather than “predict,” and that requires establishing some basic assumptions.
A strong retirement income strategy considers many factors, including the retiree’s unique financial resources and needs. How and when you tackle them is critical.
Even in tough times, you can secure retirement income that lets you maintain your lifestyle, lasts a lifetime, adjusts for life events and leaves a legacy for the kids.
Each investor is unique, so the answer to that isn't as simple as it sounds. Let's take a look at a few different scenarios to see the outcomes.
For the most important financial decision of your life, you need a plan that’s tailored especially for you.
Investors saving for retirement are familiar with the 60/40 rule, concerning stocks and bonds. But for retirees, a different kind of 60/40 rule applies – one designed to deliver lifetime income.
How the right plan now can get you back on track and reduce the risk going forward.
Combining elements that you understand is the smartest way to create a secure retirement.
Find calmer seas with a retirement plan that includes safe income and eliminates the sour stomach that comes with market corrections.
Some sectors of the population may feel the pain of interest rate hikes, while current retirees, and those near retirement, could actually benefit.
Answers to frequently asked questions about how annuities work, what they can do for retirees, how they are taxed and how inflation affects them.
Your retirement income plan starts here with a primer on Income Allocation planning, my method of creating a reliable stream of income big enough and steady enough to last you through retirement.
Numbers necessarily rule our retirement decisions, and we usually have questions about them. At what age will we stop working full time? How long of a retirement should we plan for? What do today’s low interest rates mean to our future income? Can we count on a reasonable dividend yield from our stock portfolio? What percentage of our income should be guaranteed for life, like Social Security, pension income and annuity payments?
The traditional thinking is that retirees should keep their taxes as low as possible and invest much of their savings in investments like tax-free municipal bonds. If you are wealthy and your average tax rate is, say, 25% or higher, that strategy might make sense.
Right now, inflation is top of mind for everyone, including retirees. Inflation is important. But it is only one of the risks that retirees have to plan for and manage. And like the other risks, you can build a plan so that rising costs (both actual and feared) do not ruin your retirement plan.
Going through the process of creating an income plan for your retirement does not mean you are done when the numbers on paper meet your immediate expectations. A successful plan depends on regular analysis and adjustments. Both might be required either because your goals change, or the world shifts.