Turn part of your savings into a paycheck that can't run out.
Social Security and a pension, if you have one, cover part of your monthly bills. The rest usually comes out of savings, which means watching the market every month. A guaranteed income stream can cover some or all of that gap.
Who this tends to help
- You're retiring in the next few years and will roll over a 401(k) or 403(b)
- Social Security won't cover your essential expenses
- You don't have a pension, or it's smaller than you'd like
- You've seen a market drop wipe out years of gains and don't want to repeat it in retirement
- You want to know the bills are covered, so the rest of your money can do its job
Three common ways to create income
Income starting now
A single premium immediate annuity (SPIA) turns a lump sum into monthly payments that start right away, for life or a set period.
Income starting later
A deferred income annuity locks in a future paycheck. You buy it today, and payments start at the age you choose.
Flexible income
A fixed indexed annuity with an income rider keeps your account value growing, with the option to turn on guaranteed lifetime withdrawals when you're ready. Riders have fees.
Rolling over a 401(k)?
When you retire, you can usually move your 401(k), 403(b) or 457 into an IRA. A direct rollover keeps the money tax-deferred and avoids the 20% withholding that comes with taking a check. Part of that rollover can go toward guaranteed income, and the rest can stay invested.
I'll help you figure out how much belongs where, based on your actual expenses and the income you already have coming in.
You don't have to use all of it. Most people only need to cover the gap between their guaranteed income and their essential bills. Your savings can handle the rest.
Have a question about your money?
Bring me the numbers: a CD that's coming due, a 401(k) you're about to roll over, or an illustration someone sent you. I'll give you a straight read on it. The call is free and commits you to nothing.