Want to generate a guaranteed fixed income in retirement, and live in Newport Beach at the same time?
Our guide will go over 3 ways you can guarantee a retirement paycheck that you can't outlive.
We all know it's expensive to live in Orange County, California.
The big questions retirees have are:
How much retirement money do I need?
How can I live on my retirement income for the rest of my life without running out of money?
What can I do to protect my retirement savings?
How can I maintain my lifestyle in retirement?
Roughly 10,000 Americans search this topic on a monthly basis.
The annuity is the only product that can guarantee you a lifetime income stream in retirement.
Luckily, you have 3 ways to utilize an annuity to do generate a fixed income that can complement your social security income in retirement.
This isn't an ideal choice because of the lack of flexibility, but in most cases, you will generate the highest income payments.
A single premium immediate annuity (SPIA) is an insurance contract in which you the owner gives the insurance company a lump sum of money in exchange for an irrevocable but guaranteed fixed income stream (retirement income paychecks) for the rest of your life.
Sweeping the Interest
Sweeping the interest is a long-time tactic where the retiree seeks the highest interest rate on a fixed annuity or Multi-Year Guaranteed Annuity (MYGA), and systematically withdrawals just the interest earned.
This strategy preserves the original investment and allows you to move that investment into another fixed annuity with a similar or higher interest rate when the contract expires.
You purchase a $100,000 fixed annuity that guarantees 3% annually for 5 years.
You then set up systematic withdrawals to pocket the 3% fixed interest you've been guaranteed each year for 5 years.
After the 5 years is up, you take the original $100,000 and purchase another fixed annuity with a similar or higher rate.
Rinse and Repeat.
Purchasing an Income Rider on a Fixed Index Annuity
Most fixed index annuities have the option to purchase a feature called an income rider, or the rider is built into the product.
The income rider then provides a guaranteed fixed income stream in retirement that you can't outlive.
The income rider tends to provide less income than the Immediate Annuity but offers more flexibility.
How An Income Rider Works
Now you have 3 ways that you can guarantee a paycheck in retirement that you'll never outlive.
If you'd like guidance in finding the best retirement income stream, please contact us for a free no obligation consultation.