Sometimes a retiree’s nest egg turns out being less than what they planned on being.
Be it unexpected costs, projection errors or even a longer life expectancy, countless factors can upend your hard-earned retirement. Other factors out of your hands like declining CD and bond rates might derail your otherwise perfect retirement approach. And you can’t forget stock market volatility. With countless variables out there, it’s best to pad your income even if you have the slightest concerns about your future.
Are you dependent on earned interest income from fixed income investments? What about the stock market? If you do, you are at risk of losing your savings. Even if you’re eating through your retirement at the recommended 4% per year, outside elements have the potential to deplete your future faster than accounted for.
The bottom line is, don’t wait until the well is dry to search for more water. If you even think your financial levels are declining at a faster rate than expected, it may be time to revise your plan.
Now might be the time to consider maximizing with a single premium immediate annuity (SPIA).
Income maximization is just what it sounds like. It’s strategic planning to extend and optimize your earnings over your remaining years. In doing so, you reduce any potential impact that the aforementioned factors can have on your nest egg.
If you are over 60 years of age and are concerned about having enough income to sustain your retirement or plan on leaving an inheritance to your heirs, income maximization is an option worth considering.
Thinking about retiring with the optimal funds is always a wise, proactive idea. Remember to always take a thoughtful approach to your retirement. With well-planned action steps in place and successful implementation, you should be positioned to enjoy your retirement in the way you envisioned.
Sure, maximized income sounds like a plan we all can get behind. More money? Sign me up! But there are more specific advantages to embarking on this endeavor. The first benefit is certainly a larger, more secure nest egg for you and your loved ones.
But additional benefits abounds when you factor in the additional level of security and comfort knowing that you’ve eliminated the risk from markets and other fluctuating investments. This new approach places you in a position to have a secured, guaranteed income from your annuity while maximizing net after-tax income.
In addition to reducing retirement risk, single premium immediate annuities usually provides you with more income. Other potential gains from your new strategy include increasing the rate of return on your investment and granting you tax advantages you previously didn’t qualify for. If you made this decision for your heirs, you have even more benefits potentially on the horizon. Your legacy is now secured and extended to heirs while maintaining the previous value of assets for their eventual inheritance.
As I mention whenever giving advice, do you own research as well. Consult with your tax and retirement professionals to ensure that this is the right course of action. Retirement is not a one-size-fits-all endeavor. Make the right, smart decisions for you and your loved ones.
To learn more about maximizing your income through single premium immediate annuities, and other ways to reach your pot of retirement gold, pick up a copy of my book Outlasting the Storm: A Survival Guide to Retirement Income Planning.