What is Lifetime Income? What is Guaranteed Income? Do you need it in #retirement?
With the numbers of baby boomers having reached, nearly reaching, and will reach in the near future, the need for guaranteed lifetime income is growing into a necessity. Factors contributing to the need of guaranteed lifetime income are so vital and increasing in importance and role in retirement planning.
A couple of those major factors are human beings are living longer. If humans are living longer, then the need for adequate funds is of even greater significance. Another factor, the cost of living is increasing, our lives are becoming more expensive and lifestyles are more expensive to maintain. Quality of living will increase too.
Statistics show, healthcare costs will be a major concern in retirement. Another factor, which we will visit later, what happens if you need Long Term Care? What if you need Long Term Care in a Long Term Care facility?
Social security benefits (SSI) are consistently, a hot topic. The SSI system, as we know it, will probably not be around by the time our children are retiring. I am not into scare tactics, but what would you do, if SSI benefit was not around for your retirement? This could be a change in your retirement planning. You need more than one or two sources of income in retirement.
Your needs will probably change throughout your lifetime, and possibly into your retirement. Needing more than one source of retirement income, to help prepare for the length of your retirement, is smart planning.
Your investments may not grow, as anticipated, prior to retirement and possibly into retirement. Statistics show that every 20 years, the stock market averages 6.25% growth, but there are down-cycles along the way. As you approach retirement, the funds in your 401(k) may not grow, as expected. You may experience a down-cycle, right before your retirement, without enough time for the 401(k) to recover.
Again, you need more than one source of retirement funds. So, what is guaranteed lifetime income? A sum of funds, that have grown tax-deferred, that are guaranteed and upon retirement at a set age, paid out in a monthly payment to you throughout retirement. The days of pensions, and possibly SSI (as we know it), and even some 401(k)s have made retirement a stressful experience, rather than pleasure, leisure, and enjoyment.
You will need guidance for retirement planning, allow us to assist!
