One of my Baby Boomer clients asked for help with a retirement plan that would provide her with a specified level of “safe income” every month. She understood that she did not have enough savings to live off interest on U.S. Treasury bonds or savings accounts. Very few of my clients have accumulated that much in savings. So, she was looking for other, higher-yielding sources of safe income.
I agreed to work with her, but first we had to agree on what “safe” means. Then we had to decide the meaning of “income.” Once we both accepted those two definitions, the plan was relatively easy.
Nothing is 100% “safe.” Even Social Security may require reform and some pension plans may need a bailout. And some sources of income that retirees count on from their savings depend on market performance, and therefore are riskier. But if you consider probabilities, the “guaranteed and lifetime” income sources below are both safe and will last a lifetime.