It is admittedly no simple task to plan one’s retirement with confidence. Even the federal government isn’t entirely clear on its recommendations to individuals who are working to prepare for a financially secure future.
On one hand, the Internal Revenue Service last year created rules that allow us to invest part of an IRA or 401(k) in a Qualifying Longevity Annuity Contract, or QLAC. This financial product can guarantee a substantial lifetime income late in retirement in return for a lump-sum investment before or early in retirement. It is a special form of a deferred income annuity.