Dependable spendable income Archives - Jerry Golden on Retirement

Choose the best way to retire with enough income

October 9, 2018 By Jerry Golden in Annuity Tags: Annuities, Dependable spendable income

A common recommendation for retirees is to cut back on spending if they don’t have enough savings to pay for essential expenses. A recent study by the Employee Benefit Research Institute (EBRI) shows that only 60% of U.S. residents between the ages of 35 and 64 are on track to cover 100% of the average costs for retirees.

But cutting back spending is not your only option.

You can also buy income annuities — with savings you have now. Then you can count on a guaranteed and likely higher amount coming in every month, including in later years when home care and large medical bills are more probable. You will take on the survival risk in the process but that may be preferable to reducing your lifestyle.

My point is this: While you can theoretically cut your spending to avoid running out of money, as EBRI pointed out in its study, that isn’t the only solution. You can also increase your income and enjoy the type of retirement you imagine.

Visit Go2Income for more ideas about how you can increase your retirement income.

Earn up to 20% more in retirement with income allocation

June 19, 2018 By Jerry Golden in Annuity Tags: Annuities, Dependable spendable income, Guaranteed Income, Income allocation, retirement income

Income will determine whether your retirement is financially successful.

When you have enough income, you feel more secure. You worry less. You can spend more time doing what you want with people whose company you enjoy.

And from an investment perspective, you’re more likely to “stay the course” and not jump out of the market.

A new study shows how an income allocation strategy beats the traditional strategy of asset allocation, and delivers that additional income with less risk. Here’s a good description of the income allocation strategy.

The study examines different risk profiles for a 70-year-old male or female who, over the rest of their lives, will generate more income, lower volatility and a higher economic return when an income allocation strategy is implemented. Implementation for your age and risk profile will need to be customized, of course, to your personal circumstances.

For a free, no-obligation copy of my income allocation study, send a request to Ask Jerry.

Do you have enough income to retire?

March 13, 2018 By Jerry Golden in Income Allocation 5 Comments Tags: Annuities, Dependable spendable income, Guaranteed Income, Income allocation, retirement income

Part III – Study confirms more income with less volatility

In Parts I and II in this series, I suggested that you could receive more retirement income with less volatility if you and your advisor moved from asset allocation to income allocation. It’s one thing to suggest and another thing to prove. So we conducted a study and will publish the full results and the underlying methodology in the next few weeks. As you will see, there are dramatic advantages to focusing on income allocation.

For this article we selected one of the case studies (a male 70, who has $1 million in retirement savings, 50% in a rollover IRA) with a current asset allocation of 30% to equities based on the “100 minus age” rule of thumb, and 70% to bonds and CDs. We compared that case to an income allocation strategy. You will see the results throughout this article, including a table of detailed results at the end of this article. Here are some highlights for this case:

Pre-tax income is increased by 32% over the investor’s lifetime.
Income volatility is reduced from 72% to 29%.

The 401(k) reaches 40, and needs work to fully reach its retirement promise

December 7, 2017 By Jerry Golden in Annuity 1 Comment Tags: 401(k), Dependable spendable income, traditional pension

On its 40^th anniversary, let us celebrate the 401(k). And then let’s get to work solving the problems left unresolved a generation ago.

The 401(k) has enabled millions of everyday workers to put away substantial sums for retirement, do it conveniently and get some tax savings. Without this mechanism and without the discipline of regular savings, future retirees might be left with just Social Security to rely on.

As you have probably heard, about forty years ago corporations that experienced the rising and fluctuating cost of traditional pensions stopped offering this lifelong, guaranteed source of retirement income. Instead, employees were steered toward the 401(k), where they could save pre-tax dollars for use when they stopped working.

How I invented Income Power

October 10, 2017 By Jerry Golden in Income Power Tags: Annuities, Dependable spendable income, Guaranteed Income, Income power, Kiplinger, Learning about Income Power, retirement income

I have been a tinkerer and inventor my entire adult life, but instead of building a better mousetrap, I concentrate on financial products.

I started my career as an actuary and graduated to manage divisions of financial service companies. I even ran my own life insurance company. Now I’m an entrepreneur and financial advisor, constantly thinking about how to help people with the most common retirement question:

Will the money I saved for retirement last for the rest of my life?

My latest invention is Income Power, which tells investors how much lifetime income they can get from their retirement savings — guaranteed. It also helps analyze what steps to take if these savings won’t provide as much income as investors need. More