In this episode, we dive into a question that's at the heart of retirement planning: Can a $2 million nest egg last a lifetime? If you're aiming for a secure retirement, it's essential to understand how different strategies can stretch your savings and provide the income you need. We’ll explore two popular approaches for making that $2 million last: the 4% Rule and an Annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB).
First, we break down the 4% Rule—a widely accepted rule of thumb. It suggests withdrawing 4% of your retirement savings in the first year, then adjusting annually for inflation. This method offers flexibility, but it comes with risks like market downturns, inflation, and the chance of outliving your savings. Is it worth the risk for the potential to leave a legacy?
Then, we shift gears to Annuities with a GLWB—an insurance product that guarantees a fixed payout, regardless of market performance. Imagine receiving $150,000 every year for life. This strategy offers peace of mind, but often lacks inflation protection. Could this higher initial income make it a better choice for those seeking certainty?
Join us as we compare these two strategies, examining the pros and cons, and help you determine which one might be the best fit for your retirement goals. Whether you value flexibility or guaranteed income, this episode will give you the insights you need to make an informed decision about your financial future.
