How much can I safely withdraw from my retirement savings?

That’s an important question. To make sure your money lasts throughout retirement, most financial professionals believe you should be able to withdraw 4% per year of your retirement portfolio. The problem we see is that you still don't have 100% certainty that your money will last for the rest of your life. Unfortunately, not everyone is going to be able to retire with a nest egg that can provide sufficient retirement income. When this happens, they will likely need to draw down the principal from their retirement savings to meet living expenses and hoping they don't outlive their money.

Less money? No worries. That's the conclusion drawn by a 2007 study, "Investing Your Lump Sum in Retirement", published jointly by Wharton and Brigham Young University economics professors. They found that by using immediate annuities, investors can generate a stream of secure lifetime retirement income for 25 - 40% less money than it would cost to create an equally secure lifetime income stream through a traditional stocks, bonds and cash portfolio. In other words, a $300,000 portfolio can provide lifetime income equal to the income of a $500,000 portfolio of stocks, bonds and cash.

The immediate annuity is relatively straightforward: It allows you to convert a single payment into monthly, quarterly or annual income guaranteed for life. Most immediate annuities are fixed, which simply means they pay an amount that's established at the outset.

Here’s an example: a 67-year-old male who buys a single income immediate annuity today can receive about 8.5% a year of the initial amount invested guaranteed for life.

KEY POINTS TO CONSIDER:

• Guaranteed income that you cannot out live
• Allows you to provide for loved ones
• Can lower your tax burden
• Greater income with less invested
• Increases spendable cash from savings

Immediate annuity holders take great comfort in a monthly check that continues to arrive in the same amount, no matter what is happening in the markets.

We are committed to making sure that you receive the right information to make the right choices.

Start planning your retirement today with a personal phone call to discuss how you can get guaranteed income for life.

Call us today at 888-804-1199.