Guaranteed Lifetime Income, Not Earnings from Your Assets
Guaranteed lifetime income sources can undergird your retirement and deliver confidence. You may have one or all of these income sources available depending upon your employer-sponsored retirement plan or if you own your home. Most retirees who own their own home could have access to at least three sources: Social Security, a reverse mortgage and a guaranteed lifetime income annuity.
If you didn’t work for an employer who offered a pension, you can still strategically use one or all three resources to build a stable financial foundation in retirement.
Defined Benefit Plans If you work for a company that provides a defined benefit plan and you’re within 10 years of retiring, you may want to finish your career there because they’re going by the wayside. The exceptions are, of course, the government and the military. If you’re job hunting and one of your employment opportunities happens to offer a defined benefit plan, you may want to jump on it.
Social Security Benefits If you qualify for Social Security benefits, you’ll want to investigate the best time to take income once you’re age 62. But unless you have a short life expectancy because of poor health or you’re simply broke and need the income, you should wait until age 70. Keep in mind the benefits may be taxable if you have other income while you’re receiving your benefits
Reverse Mortgages If you’re at least age 62, have equity in your home or own it free and clear, you may want to consider a tax-free reverse mortgage that can generate monthly income for your life as well as you spouse’s. Reverse mortgages are under the Home Equity Conversion Mortgage (HECM) program created for seniors. It is recommended the HECM reverse mortgage be used for your final residence because there could be financial ramifications if you move out.
Guaranteed Lifetime Income Annuities There are two types of guaranteed lifetime income annuities: single premium immediate annuity and deferred income annuities. Both offer elective inflation riders that can deliver an annual increase. Watch the interview on guaranteed lifetime income annuities with Tom Hegna, popular platform speaker, retirement specialist and best-selling author. Tom has two retirement books entitled Don’t Worry, Retire Happy and Paychecks and Playchecks. Tom has also hosted the PBS Special, “Don’t Worry, Retire Happy.”
Nationally syndicated financial columnist Steve Savant interviews Tom Hegna, popular platform speaker, retirement expert and best selling author. Tom has two retirement books entitled Don’t Worry Retire Happy and Paychecks and Playchecks. Tom has also hosted the PBS Special, Don’t Worry Retire Happy.