The Problem Guaranteed Income Solves
Without knowing how long retirement will last, it is difficult to know exactly how much savings can safely provide each month. And when dollars earmarked for income remain exposed to a poorly timed market downturn, you cannot be certain they will be there when needed.
Where Guaranteed Income Comes From
- Income annuities: Contractual payments for life or for a duration you choose.
- Growth annuities with income riders: Protected growth potential paired with a future guaranteed income feature.
- Pension maximization: Comparing payout choices before benefits begin.
- Social Security: Coordinating claiming strategies to improve lifetime income.
How Much Should Be Guaranteed?
Not every dollar needs a guarantee, and not every client needs one. The right amount depends on essential expenses, other income sources, liquidity needs, legacy goals, and how much certainty you value.
Single vs. Joint Income
For married couples, income can often continue for as long as either spouse is living or be based on a single life. Joint options generally begin with a lower payment in exchange for extended protection.
Inflation and Purchasing Power
A level monthly payment loses purchasing power over time. We weigh level income against increasing or inflation-sensitive alternatives.
Liquidity and Legacy
Guaranteed income can involve reduced liquidity and, in some structures, reduced legacy value if death occurs early. We address those trade-offs directly.
Our Process
We identify essential expenses and how much is already covered by Social Security, pensions, or other guaranteed sources. If a gap exists, we determine how much guaranteed income could close it and at what cost to liquidity and legacy goals.