I know I’m a little off my usual Friday schedule by posting this today, but with the holidays ahead, I wanted to take this opportunity to wish you and yours a happy and healthy holiday season.
This will be my final post of 2015. After the New Year, I’ll return with more of my insights to help you plan for a happy, healthy and financially secure retirement. Until then, enjoy these last few tidbits.
Jumbo Size Nest Eggs Are Needed
According to research recently released by S&P Capital IQ and SNL Financial, retiree nest eggs now need to be much larger than what was required 40 years ago to generate the same level of investment income.
Stealing a line from Porgy and Bess, “It ain’t necessarily so!”
According to this study, savings would have to increase by 600% to produce the same income – assuming an investment in Treasuries. Essentially blowing up most savers’ retirement.
However, to reduce or eliminate the need to save more why not purchase income annuities that provide 6x or more the amount of income?
If someone suggests you’re disinheriting your kids with an income annuity, all I would say is that the alternative is worse. Without that guaranteed income, you’ll eat through your savings and have nothing left to transfer anyway.
How to make that retirement nest egg last
Out of the top ten list of movies, you’ll find one or two and ask, “Are they kidding?”
The same is true for retirement tips, and this article is no exception.
There isn’t any condition when your first step should be to “reduce withdrawals to leave more for the kids.”
Instead, you should be asking yourself these questions:
- Is an income annuity right for me?
- What income annuity features do I want?
- Which of the top-rated insurers has the best rate for the income annuity I designed for myself?
Then, plug that information into your budget and work from there.
And if you need help answering those questions for yourself, visit our Go2Income Toolkit. It provides all the necessary resources you need to find the answers you’re looking for.