Annuities Archives - Jerry Golden on Retirement

Increase Income by 30%, and Long-Term Liquid Savings by Even More

December 12, 2025 By Jerry Golden in Annuity Tags: all-assets, Annuities, HECM, increase income, IRA2Savings, Jerry Golden

Why Plan for Retirement with Only Half Your Assets?

You’ve heard the expression, “It’s the elephant in the room,” when referring to something that is huge but still ignored. That’s true in retirement planning, too, but it’s not the elephant nor the room; it’s the house.

The net worth of retirees over the past three decades has tilted steadily toward housing wealth. A study by the Federal Reserve shows that the share of net worth in primary residences among households headed by people ages 60 to 69 rose from roughly 40% in 1989 to just over 50% by 2022. For those aged 70 to 79, the share climbed from about 38% to 50% over the same period.

A QLAC Does So Much More Than Simply Defer Taxes

June 15, 2025 By Jerry Golden in Annuity Tags: Annuities, Jerry Golden, QLAC, retirement savings

Here are the multiple ways you can use a QLAC, from managing retirement risks to creating income for specific retirement needs and wants.

Perhaps you’ve heard of QLACs and want to learn more about how you might incorporate one into your plan for retirement income, but you feel like you don’t have quite enough information.

No wonder.

A well-written and thoughtful op-ed in the New York Times about reducing risk in retirement did mention annuities, but to my chagrin, it didn’t bring up the value of QLACs, despite:

Government endorsement of QLACs’ significant retirement benefits
A competitive QLAC marketplace, with top-rated insurance carriers
Flexible planning software that can show you how to integrate a QLAC into your retirement plans
QLAC rates are at an all-time high ─ for a new retiree, an average of 80% better than three years ago

Check out the rates for yourself by visiting our QLAC Calculator.

This Underused IRA Option Offers Both Tax Benefits and Income Security

April 13, 2025 By Jerry Golden in Annuity Tags: Annuities, healthcare needs in retirement, tax benefits

Looking to avoid running out of money in retirement? Consider longevity protection provided by a QLAC as a component of your retirement income plan.

A little more than 10 years ago, the U.S. government did something right for retirees. It created the QLAC as a way to provide longevity protection on a tax-favored basis using savings in an IRA or other qualified account. Here’s how the bill was framed:

“All Americans deserve security in their later years and need effective tools to make the most of their hard-earned savings,” the IRS said of the rationale for QLAC. “As boomers approach retirement and life expectancies increase, longevity income annuities (our emphasis) can be an important option to help Americans plan for retirement and ensure they have a regular stream of income for as long as they live.”

As part of new legislation passed in December 2022, the SECURE 2.0 Act addressed many areas of retirement, including increasing the amount that can be invested in a QLAC to $200,000. As important, the law also eliminated a requirement that limited QLAC premiums to 25% of an individual’s retirement account balance. Finally, in January 2025 the limit was further increased to $210,000, up from the original $125,000. Taken together, that means a single investor with $400,000 of IRA assets could more than double their QLAC allocation from $100,000 to $210,000.

Retirement Income Planning for Unfunded Health Care Costs

April 12, 2025 By Jerry Golden in Annuity Tags: Annuities, health care costs, tax benefits

Oftentimes, retirement income plans don’t include late-in-life health or long-term care expenses. Here’s how to cover for the unplanned withdrawals to pay for those.

At lunch recently, a friend said he was about to meet with his financial adviser, who had prepared a 20-page report that, he told me, “will wrap up everything” about his retirement. I asked whether it would address long-term care or similar needs. He wasn’t sure.

I followed up: “Do you and your wife have LTC insurance?” Nope. He didn’t qualify when they applied years back.

So, the 20-page report will not cover “everything” my friend needs to consider for retirement.

Expenses for health care are often referred to as unplanned expenses, but actually they are expected; at least 70% of us will experience a long-term health event in our later years. So, I refer to these expenses as planned but not currently funded. The best plans account for them in retirement. (Unplanned expenses are what thousands of Los Angeles residents experienced this year with the wildfires.)

How to Add Home Equity to Your Retirement Income Planning

June 9, 2024 By Jerry Golden in Annuity Tags: Annuities, Home equity, Retirement Planning, stay in home

Home equity is sometimes overlooked as a viable resource in retirement. You don’t have to sell your home to find income and liquidity.

With more retirees than ever choosing to age in place, the idea of selling your home to downsize may no longer be part of your plans.

That’s smart, because you don’t have to sell the homestead to produce retirement income and help cover the costs associated with a critical health crisis, or just the effects of aging that require outside care.In the New York Times article The High-Class Problem That Comes With Home Equity, author Ron Lieber, the NYT’s Your Money columnist, suggests that reverse mortgages could be a good product for some retirees who want to tap the equity in their home without selling. We agree, and the Go2Income planning method can now incorporate a reverse mortgage.

I have found that lifetime income, liquidity for unplanned expenses, lower taxes and a financial legacy are the objectives most retirees seek. When they also want to stay in their homes or age in place, I propose that annuities and home equity, added to traditional savings and investments, will best meet their retirement goals.