Let’s take a close look at ways to create the liquidity necessary in your income plan to cover big-ticket items later in retirement, such as long-term care.
I’d like to make one thing clear. Every retirement income plan I design is to provide lifetime income. A retirement plan doesn’t last for 10 or 15 years, or for your life expectancy of, say, 22.7 years — your retirement is for life. Your income should be, too. I don’t consider lifetime income a feature to be chosen. It just is.
However, we all have additional financial needs and wants.
So, when retirees and near-retirees come to me for a Go2Income plan and point to their large retirement savings accounts as proof that they have plenty of liquidity to cover their regular budget as well as the costs of, for example, long-term care, roof repair or funding the grandkids’ college, I go into lecture mode.More