The Retiree’s Trilemma: More Spendable Income, Less Risk, or More Legacy?

January 4, 2021 By Jerry Golden in Income Allocation Tags: Annuities, financial legacy, financial risk, Income annuities, inheritance for family, retirement income, retirement savings

With Go2Income’s Planning, Lower Fees, and Lower Taxes, You Can Get All Three

Our wish is for the New Year to bring less chaos and disruption and more satisfaction, even as we acknowledge that many of those hoped-for gains will require new thinking and energetic approaches.

Come with me as I examine some new thinking when it comes to your retirement finances.

For a long time, it was thought that an encyclopedia could not at once be authoritative, comprehensive and current. At least one of the three important qualities had to give.

Jerry’s Retirement Ideas

November 25, 2020 By Jerry Golden in Income Allocation Tags: Income allocation, investing for women, Jerry Golden, retirement inncome

A 50% Increase in Spendable Income is Possible

Income Allocation Can Make It Happen

Creating more spendable income in retirement does not have to be risky.

As you will see from the example below that I used in a webinar a few months back, shifting investments from taxable bonds to annuity payment contracts resulted in a large increase in spendable annual income for this retiree.

Your circumstances will not be the same as the retiree in this example, but following an Income Allocation plan can help you find increases in income. Contact me when you are ready to find more income for your own retirement.

A New Approach to Retirement Income Planning for Women

November 23, 2020 By Jerry Golden in Income Allocation Tags: Income allocation, Jerry Golden, retirement income, Retirement planning for women

I want to reinvent retirement income planning for women.

Women have a lot going against them — much more than men — when it comes to creating enough income to last through their retirement years. Set out below is a list of some of the impediments women must overcome, along with solutions that will provide a satisfying retirement. Now, while all women face actuarial obstacles, i.e., longevity and caregiving, not all face the financially related issues. However, without an approach that addresses all of the issues we may leave some important ones out.

How to Turn Your Retirement Savings into Retirement Income

November 20, 2020 By Jerry Golden in Income Allocation Tags: annuity payments, Income allocation, retirement advisors, retirement income, retirement savings

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.

I have been working a long time on retirement planning that creates more and safer income for retirees. So long, in fact, that I sometimes forget the subject is new to most investors. They get much of their financial information from their advisers — who often simply treat these investors as “de-accumulators.” Another way to describe their message is, “Invest like you did when you were 55, only more conservatively.” In my opinion, that is not helpful guidance.

Jerry’s Retirement Ideas

November 10, 2020 By Jerry Golden in Income Allocation Tags: annuity payments, Income allocation, Income annuities, income for women, Jerry Golden, tax benefits

Women Generate High Retirement Income Nearly Tax-Free!

IRS Tax Rules Favor Females

One of the lessons that women learn as they make plans to convert their retirement savings into income is that they should plan for lower income than a man might take from an account of the same size.

That’s because women live longer, and they need to ensure their savings last longer.

The IRS, however, is not allowed to consider gender when it writes its tax rules. That means women can use some of their personal (after-tax) savings to buy annuity payments and benefit from their favorable tax treatment. Suddenly, gender is a plus, not a negative.

Payments from an income annuity purchased with personal savings receive a tax break because a portion of each annuity payment is considered a return of previously taxed principal, until the principal has been paid out. Looking at an annuity quote as of Nov. 7, a female aged 70 with $1 million can generate $66,712 per year in guaranteed lifetime annuity payments and be taxed on only $2,535 per year until age 85. After age 85, when payments become fully taxable, she is likely to have larger tax deductions from unreimbursed medical and caregiver costs.

In the example above, 98.5% of the income is received income-tax-free, translating to less than $1,000 a year in taxes.

While men receive a tax benefit, too, it’s not as large as the one for women.

In this environment, generating more income from annuity payments is crucial; paying fewer taxes is just icing on the cake.

Finally, a win for women everywhere.

Click here to get an annuity quote and the tax benefits you can get. Or contact me for a conversation about even more tax benefits.