Jerry Golden on Retirement

New Legislation – A Boost for Your Retirement Income Plan

January 17, 2023 By Jerry Golden in Annuity Tags: Income annuities, new legislation, QLAC, retirement income, SECURE 2.0

Get the retirement you want by securing the income you need

Let’s start the New Year with breaking news: Just-enacted legislation called SECURE 2.0 Act of 2022 contains provisions that make it much easier to purchase pension-like income in your Plan for Retirement Income (Plan). The new legislation allows you to defer more taxes and buy more retirement income from your 401(k), Rollover IRA, or similar tax-qualified accounts.

Combine this with the higher annuity payouts due to higher interest rates from these vehicles, and we’re talking about 100% to 250% more income from this source when compared to December 2021. The vehicle is a Qualifying Longevity Annuity Contract — or QLAC for short. Importantly it’s only offered by some of the highest-rated insurance companies in the U.S.

Spoiler Alert: The maximum QLAC per individual is now $200,000 with no percentage limit.

Doing Your Retirement Income Planning in the Right Order Matters

December 27, 2022 By Jerry Golden in Annuity Tags: Go2Income, Jerry Golden, retirement strategy, right order

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.

For all sorts of activities, doing things in the right order matters. We mostly talk about the process of retirement income planning, but the order of retirement income planning is important. To illustrate the point, let’s first look at the simpler example that baseball provides.

Slugger Aaron Judge found himself hitting first in the Yankees lineup while he pursued the American League home run record. As the first hitter up, he usually got an extra at-bat in each game, which gave him additional chances to hit No. 62.

How Much More Retirement Income? Not as Simple as it Sounds

October 20, 2022 By Jerry Golden in Annuity Tags: annuity payments, Income annuities, inflation protection, retirement income

A savvy consultant recently asked me how much more income a Go2Income plan, with its integration of annuity payments and focus on income allocation, could produce as compared to a traditional retirement income plan. Might it be 20% or more?

He recalled my discussion about rules of thumb in Retirement Planning: One Size Doesn’t Fit All. In that article, I pointed out that the Starting Income Percentage (SIP) for a Go2Income plan was 5% — vs. the “4% rule of thumb” many advisers include in their plans. (That extra percentage point, from 4% to 5%, is a 25% gain.)

One Size Doesn’t Fit All — Especially in Planning Your Retirement

September 20, 2022 By Jerry Golden in Annuity Tags: Income annuities, Jerry Golden, retirement income, Retirement Planning

For the most important financial decision of your life, you need a plan that’s tailored especially for you, rather than simply following rules of thumb.

Planning for retirement is not easy. The key to planning is to reduce the probabilistic aspects of your retirement and to effectively manage the other risks. Importantly, that process is very personal.

For my next four articles, I’m going to give you the following retirement planning lessons based on what we at Go2Income have learned these past five years:

One Size Doesn’t Fit All — Especially in Planning Your Retirement
Understand the Numbers — And What Contributes to Success
Plan Should Last a Lifetime — But Should Adjust to Your Life Events
Get Your Order Right — So Do Your Planning in Right Order

Investing for Retirement Income is Different – Rethink 60/40 Rule

August 30, 2022 By Jerry Golden in Annuity Tags: 60/40 rule, FolioBeyond, Income annuities, retirement income, Retirement Planning

A lot of retirement guidance I have read lately continues to treat baby boomers the same as the rest of the investor public. Even after the first six months of 2022, when the traditional 60/40 stock/bond portfolio sank more than 20%.

I may not dispute the traditional approach for investors who are 25, 35 or 45 years old and accumulating savings for retirement or the kids’ college education. As we know, markets historically rebound, and younger investors with time to recover from market corrections have the benefit of dollar cost averaging.