Steve Vernon is our guest this week. Here is an outline of what we're talking about on this episode:
1. Risks retirees face when planning for income in retirement –
a. Market Risk – losing money just before or just after retirement can devastate one’s plans
b. Inflation Risk – having a fixed income in retirement that does not increase with rising inflation can cause a lot of stress on a portfolio
c. Longevity Risk – living longer than you expected to, draining your assets in the process down to potentially nothing
d. No Pension through work – now have to turn your IRA or 401(k) balance into a pension yourself – what are best ways to do that?
2. Can an annuity help you with any of these risks in retirement? –
a. Many different types of annuities you can purchase
i. Immediate
ii. Deferred
1. Variable
2. Fixed
3. Fixed-Index
b. Provide a paycheck for life from a sum of money – either paycheck now or paycheck in the future
c. Designed to supplement social security or pensions through your employers as a supplemental guaranteed income source
