01/18/2020
Why working with an annuity specialist can enhance your retirement income plan.
If you’re wondering why working with an annuity specialist can enhance your retirement income plan, you’ve come to the right place. Unlike stocks or bonds, annuities can guarantee a long-lasting income stream, regardless of what is happening in the market, or even in the economy overall.
But there is a wide variety of annuities in the marketplace today, and each one can be a bit different. So, before you make a long-term commitment to just any annuity, make sure that you discuss your goals and your potential options with a professional who is trained in retirement income planning.
Why Retirement Income Planning is Different Today
In the past, retirees could typically count on income from three distinct sources. These sources were often referred to as a “three-legged stool.” First, many employers offered defined benefit pension plans. Retired workers could count on a certain amount of income for the rest of their lives. And in some cases, the income could even continue for a surviving spouse.
Social Security was the second “leg” of the stool. While this source was never intended to fully replace one’s pre-retirement income, it was – and for now, it still is – a reliable income generator for both qualifying workers and their spouses.
Unfortunately, because there are so many Baby Boomers entering into retirement (approximately 10,000 turn age 65 every day), the Social Security trust fund is slated to run dry over the next couple of decades.
Then what?
The third source of retirement income came from personal savings and investments. Many years ago, retirees would oftentimes not need to rely on this income generator because they had more than enough from the first two “legs.” In addition, life expectancy was shorter, so the likelihood of running out of income during retirement was not nearly as high as it is today.
What Makes a Retirement Income Specialist an Expert?
Although many people may advertise their financial planning services, a true retirement income expert can help you to sort out the best ways to generate an incoming cash flow. In doing so, there are a variety of factors to consider, such as:
• Market volatility
• Interest rates
• Inflation
• Possible future healthcare costs
• Longevity
In retirement, you essentially need to replace your paycheck – and just like during your working years, it is essential to consider the rising costs of the goods and services that you need, as well as everyday living expenses, and possible emergencies. But not every financial advisor is equipped to do so.
Ready to See How an Annuity Specialist Can Create a Plan for Your Worry-Free Retirement?
If your current financial advisor is more interested in selling you the “next hot stock,” it may be time to shift gears and talk to a retirement income specialist. That’s where the Retire by Design llc comes in.
We specialize in setting up current and future income plans that best meet both short- and long-term needs. To find out how you can lock in an income stream that will last as long as you need it to – regardless of how long that may be – contact us directly at (616) 233-4759, and set up a time to chat with one of our annuity experts.
