March 11

Buy Some Guaranteed Income


Thinking about diversifying a portion of your portfolio into something safe and guaranteed? Here's what Susie Orman has to say about it.

Excerpt from recent AARP Article with Financial Guru Susie Orman.1

There is no better sleep-at-night, enjoy-your-retirement move than to know you can cover your basic monthly living expenses from income that is guaranteed to land in your bank account every month. 

Your Social Security benefit is guaranteed income. So is a pension, if you have one. If those guaranteed sources don't cover all your living expenses, I think it can make great sense to use some of your retirement savings to purchase an income annuity.

If you just cringed at the mere mention of an annuity, I am actually thrilled. There are indeed plenty of lousy annuities that make insurance agents a lot of money and are a bad deal for you. I am recommending only one specific type of annuity: a plain vanilla annuity by which, in exchange for paying a premium to an insurer, you can lock in guaranteed monthly income for the rest of your life. You can buy an immediate income annuity with a single lump-sum payment you make right when you are ready to start living off your retirement income. The payout you receive is based on your age, whether benefits will continue for a spouse, and interest rates. To get an estimate of what size premium you would need to generate the guaranteed income you want to contact: Coliday

While covering your ongoing costs with guaranteed income is a great stress reducer, so is having cash ready to handle whatever comes your way, such as a spike in out-of-pocket medical bills.

 As you reach retirement, I recommend increasing your emergency fund from eight months to two years of coverage. If you don't have all your living expenses covered by guaranteed income, I would bump this up to a three-year cushion.

What you do with the rest of your savings is a personal choice. The prospect of living into your 90s should be motivation to keep some of your money working (invested) for a future older you. But I also want you to give yourself the freedom to spend extra savings on you, your loved ones or causes you care about.

Interested in learning more about retirement income through annuities? Please contact me and I will clearly explain what options are available. Please share with your family and friends. Contact me with any questions or concerns.

As always, plan wisely my friends,

Finding a reputable and trusted partner to assist you with your social security, Medicare, financial & insurance needs is of vital importance.  I will work hard to find the best programs, coverage and rates that fits your budget and your needs. Contact me at 949-216-8459 or ccolley@coliday.com

Click here for other articles about Annuities 

Information and materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. The above information is not intended to provide, and should not be relied on for, tax, legal, accounting or investment advice.
Coliday / Craig Colley is not giving any financial , tax or legal advice, is not a financial advisor and is not affiliated, employed or endorsed by the SSA, Medicare.gov. or any other government agency.


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