The Life-Changing Benefits of Knowing Your Money is Safe and Your Income Will Last

by | May 30, 2020 | Blog

As government debts explode to even more dangerous levels, here’s the reality:  bond rates will likely need to stay low because politicians keep spending your money and mine without any apparent regard for future generations.

IQ Wealth Management - Steve Jurich - IQ Wealth Management

They seem to have discovered that low interest rates on bonds (as in “zero”) means they can borrow more without increasing their debt payments. 

The bigger the National debt, the lower your bond rates need to stay.

What does that mean to you as an investor trying to finance your own retirement for twenty or thirty years or more?

It means that you can no longer rely on your parents’ and grandparents’ retirement strategy which went like this: retire, leave the stock market, buy bonds, collect a pension, relax. That formula has been interrupted, maybe for good.

Do You Have A Retirement Income Gap?

The term “income gap” is used in financial planning to describe the shortfall of your income to your living expenses projected out to age 95 or 100.  We don’t try to guess when you will die—we build plans to keep going as long as you do.  With bond rates this low, however,  the math is simple. Many people will spend down their principal if they don’t switch to a lifetime income plan very soon. That’s because the lack of a pension is a big problem today.

Pensions disappearing

Because bonds pay so little, and because pensions are vanishing, a very large income gap has developed for the ten thousand Baby Boomers who retire every day.  How can you retire if you don’t know you will have enough income to last?  Well, you really can’t.

band rates likely to stay low - low bond rates

That’s why many retiring engineers, teachers, management, medical and health care professionals are turning to special forms of flexible annuities to fill the income gap.

A mathematical solution to a sticky problem

Owning a retirement annuity today is a smart,  mathematical solution to a problem that is not going away. Sure, you can run to cash to feel safe, but at zero percent, you will just spend down your principal with no backstop. What happens when you run out, or run down to dangerous levels? What about inflation?

Never worry about your retirement money running out

Low rates, shaky markets. These undeniable realities have caused a growing number of smart, educated retirees to explore annuities.  Today’s newer annuities are more flexible. They are made for retirement. They are not for people in their twenties or thirties. Here’s some good news about aging for a change: The older you get, the more an annuity will pay you.

Benefits of knowing your money is safe.

Thankfully, the annuities of old are a thing of the past.

Gone are the days when the insurance company keeps your money when you die. Gone are the days when you have to pay the exorbitant fees for a variable annuity.

Today, annuities have advanced. The NEXT GENERATION of fixed index annuities allow you to share in the upside of a market index without a cap.

You get to keep all of the gains you make, with no losses.

You never experience a market loss, and you never pay a management fee or advisor fee. Your income can be guaranteed at up to five to nine percent annually for life, depending on age and deferral period. (You can take the income monthly.)

If you do your homework, you will find there is nowhere else in the financial world to get principal safety, high income, growth potential, and protection for heirs all in one asset.  I refer to today’s newer fixed index annuities as NEXT GENERATION retirement annuities.  Enjoy the life-changing feeling of owning guaranteed income security in a high debt, low interest world. 

The world isn’t getting safer and more secure. The opposite is happening. Retire and stay retired with a new and better approach to your retirement. Anchor your financial plan with a top ranked Next Generation annuity. Build it from there. If you would like some help, I compare over 1200 annuities for my clients, with a fiduciary duty.

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