This article does a good job of highlighting the problems when it comes to retirement planning. There are too many options and not enough training, which leaves investors confused and uncertain about how to actually save for their future.
And saving is only half the challenge. The U.S. needs a better, simpler retirement income solution.
By the way, expressing retirement in terms of income will improve the savings. Investors will have a better understanding of what’s needed to create the retirement income they want in the future, and will be more inclined to save to reach that goal.
So, keep the income you’ll need in front of you. Then pick a strategy that does the best job of hitting that income goal.
For most advisory firms, healthcare planning is a new frontier, but it is a service that will be desperately needed by a large number of clients. According to a recent survey by Bankrate.com, more people rank high medical expenses as their chief concern in retirement over running out of money.
Retirement planning must consider the long-term costs of medical care, home health care and nursing homes, especially since, as one ages, these costs are bound to increase. This simultaneously increases the likelihood that an investor will run through his or her savings.
In a future blog post, I’ll show you a way to reduce your risks.
Even Motley Fool recognizes the benefits of income annuities. In this article, they stated:
One of the greatest dangers we face as we get older is the risk of running out of money. One way to put such a worry to rest is with a certain kind of annuity. On top of providing you with a steady stream of income, this annuity can simplify your finances and lower your risk of mismanaging your money as you age.
One of the benefits of income annuities that this article highlights is that they are self-completing. That is, they don’t require support from an advisor or your kids later in retirement.
Income annuity payments simply arrive like a retirement paycheck, transferred into your account every month with any applicable taxes withheld. And they will keep coming as long as you’re alive and the insurer is solvent.
To mitigate that risk, always buy from a highly rated insurer. Our Go2Income Annuity Shopping Service only includes the best of the best to ensure that when you choose an income annuity through us, you’ll have the peace of mind you deserve.