Six Reasons Why Retirees outlive Their Income
And A Formula That Guarantees Income For Life
~By Rick Kelly, CSA ~
A secure income in retirement is your most important financial asset! If you take away the income, you are toast!
Retirement income used to be so easy! You would put money into a fixed product, live off the interest and be happy! Oh, how times have changed!
Historically low interest rates and two major economic meltdowns since 2000 have totally changed retirement income planning!
In fact, today we find there are six reasons why retirees outlive their income:
- Buying the wrong products- the old fixed and/or growth product approaches don’t work anymore.
- Using the wrong strategies-interest only and/or systematic withdrawals work best during higher rates and rising markets which don’t currently exist.
- Volatile markets-most retirees take more risk for their income than they should.
- Longevity- your money may have to last 30 years or more!
- Inflation-failing to factor in annual increases in the costs of living.
- Taxes-failing to factor in taxes.
Successful lifetime income planning today requires a new formula!
There are six steps you must follow today for lifetime income success:
- Budget-you must know what it cost to be you.
- Product/Strategy-your needed income must be guaranteed.
- Inflation/Taxation-you have to calculate an annual inflation rate and taxes on top of your needed income.
- Lifetime-The income you need must be guaranteed to last for your lifetime.
- Can’t Go Down-your income can’t go down, no matter what.
- Can Go Up-your income must have the ability to rise in the future.
When you apply the lifetime income formula, you don’t have to worry any more about your income! You will have less stress and more time to focus on what’s important to you and more enjoyment in your retirement.
Rick Kelly
Rick Kelly is a Certified Senior Advisor with Futurity First-Summit Financial Group in CO. He helps retirees to secure and defend their retirements. To request A FREE COPY of his “Lifetime Retirement Income Tool Kit” email him at rickkelly@ffig.com or call his toll-free 24-hour resource line right now at 1-877-596-8233.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which products/investment(s) may be appropriate for you, consult with your attorney, accountant, financial advisor or tax advisor prior to investing.