The idea of a budget is really quite simple – know what is coming in and know what is going out. If we can be certain of the amount of expenses that need to be paid each month, we can begin to plan and save accordingly. During your working years it is critical to be mindful of what income you have coming in, but we can work towards ensuring our incoming cash flow is growing in comparison to our outgoing bills. Promotions, side hustles, passive income, and second occupations can all help increase that cash flow.
INCREASING CASH FLOW IN RETIREMENT
The same mindset is required in your retirement years. While your employment income will cease, it is highly probable that you will have some expenses that continue. Property taxes, car payments, and the like are often still very present during retirement. And for those that have worked to be debt free in their retirement years, knowing what your retirement income is – or will be, and knowing how to increase that income as needed is necessary.
Many retirees face the retirement gap when it comes to their income. In fact, 65% of retirees face a significant gap between their retirement income and their outgoing expenses. Similarly, the gap still often exists between your actual retirement income and your desired income. Employers have gone away from providing a defined benefit pension plan, and Social Security will not be enough. In order to sustain your desired quality of life, and ensure an adequate retirement income you can build an income floor utilizing a fixed annuity.
PROVIDING GUARANTEED RETIREMENT INCOME
Annuities are not new. However, in the last decade they have grown in popularity with everyone from retirees to millennial minimalists. The biggest reason for the increased awareness and utilization of annuities is their ability to provide you with a guaranteed set amount of income. The annuity owner can opt for a pre-selected duration of time i.e., ten or twenty years, or even the remainder of their lifetime – regardless of when and how long that might be.
Annuities are designed to allow you to determine when and how you draw an income. For those who may be nearing or in their retirement years, you can design a strategy that begins paying you an income now (immediate annuity). Alternatively, retirement may be some time into the future and you would like your principal to accumulate years of compound interest – even up to 30 years or more, before you need income (deferred annuity). Annuities offer a variety of plan strategies to meet your retirement needs, dreams and goals.
- NO ANNUAL CONTRIBUTION LIMITS
- TAX DEFERRAL
- MONTHLY OR YEARLY COMPOUND INTEREST
- EVERY DOLLAR YOU INVEST WORKS FOR YOU
- INCOME CASH OPTIONS
- GUARANTEED RETIREMENT INCOME
- STEADY STREAM OF INCOME
Fixed annuities offer a retirement income strategy that protects your principal, applies continuous compound interest, and allows you to invest in the market or interest rate environment of your choosing. There are many annuity strategies to choose from, and not all of them are alike. Contact us today to learn how an annuity might be the best compliment to your retirement plan.
