A recent article from US & World Report discusses the way to plan for income in retirement. Once you have properly prepared for your retirement, meaning you have evaluated your savings, your expenses, and your needed income you are ready to get your plan on track. The key is to align your guaranteed income level with your needed expenses. With the 4% rule being thrown out the window in the current low yield environment and CD rates at all-time lows, using annuities to help cover the income gap between your social security and pension payouts can be ideal. Fixed indexed annuities are growing in popularity with the decreased use of pensions.
Once your needed income is covered by a guaranteed income stream, the rest of your investments are able to cover your discretionary spending and any legacy you are planning to leave to your heirs. This peace of mind is vital to a happy and successful retirement plan.
For more information on annuities and the reasons to purchase an annuity, visit the Retirement Think Tank.
To read the article from US & World Report, click here.