Using the Buckets of Wealth approach to develop an income strategy.
Retirement. It’s not that simple anymore.
Most boomers will have no pension, questionable Social Security benefits, and a hefty mortgage, along with other debt, well into retirement.
So, when the PAYCHECK STOPS, how do we turn our non-guaranteed retirement savings into a guaranteed lifetime income stream that can keep pace with inflation, which in recent months is out of control. How do we walk the line between safety versus return, risk versus reward, and guarantees versus opportunities? How can we have our cake and eat it too?
What if there was a way to participate in some of the market upside and ignore the market downside? What if we could potentially make money when the market gained but hold steady when it inevitably retreated? How do we make our 401k plans and IRA’s “PERSONAL PENSION PLANS”?
By creating Buckets of Wealth. Each bucket serves a different purpose: income, inflation, emergencies, and travel, or the FUN bucket as I like to call it. And since the income bucket is No. 1 on the list, it’s the first item you need to fund in order to replace that paycheck you just gave up, and keep you retired. So, what is the only savings vehicle that can guarantee an income we can never outlive?
Well, the answer could be a fixed index annuity. Fixed meaning that your investment, plus any index gains, are guaranteed to never lose money. Index meaning that stock market indices, like the S&P 500, are used to calculate gains only, based on a formula determined by the company issuing the annuity. It can be a solid addition to the income bucket and allow the inflation bucket to grow.
But, like any financial product, index annuities can be complicated, and they may not be for you. So, do your homework, establish your income goals, and speak to a financial professional who can help build your very own plan to gain greater financial confidence and added peace of mind in retirement. It is your retirement, so take control. PROTECT YOUR LIFETIME SAVINGS.
Steve Anzuoni, RICP®
Steve Anzuoni is a graduate of Norwich University and began his insurance and financial services career in 1986 with John Hancock. In 1999, he formed Fairway Financial. He is the author of the National Best-Selling Book Tee Up Your Retirement, and host of Ready, Set, Retire Radio on WXTK 95.1FM Saturday’s at 6AM. He is the exclusive retirement income professional for the Grace Curley Show on WRKO, and can be reached at 508-398-3337, or by visiting www.fairwayfinancial.net.
Steven Anzuoni is a licensed insurance provider by the division of insurance and is not registered as in investment advisor in the Commonwealth of MA. Guarantees and protections provided by insurance products are backed by the financial strength and claims paying ability of the issuing insurance carrier. This product will not meet the needs of every individual situation. Seek the guidance of an Insurance Professional.