How To Turn Your Life Savings into a Guaranteed Lifetime Income

Most people squirrel away a lifetime of savings for one purpose: To generate a secure income in retirement. Social Security is almost never enough by itself. Most retirees rely on gradually spending down their retirement savings to generate income to pay the bills.

That’s why stock market volatility is so worrying: 2022 saw the U.S. stock market decline for three consecutive quarters – the longest losing streak for the S&P 500 and the Nasdaq since 2008, and the Dow’s longest quarterly losing streak in seven years.

I’m a big believer in American enterprise. And in the long-term return potential of American technology, ingenuity, and leadership. Long-term, America is going to do great!.

But people entering retirement can’t always ride out short-term stock market volatility. When stock markets fall, retirees exposed to stock market risk must either make do with less income, or empty their retirement accounts that much sooner.

And that raises the specter of a risk that terrifies most Americans: The possibility that you or your widow could run out of money. 

It’s called longevity risk. And it’s very real. People are living longer and longer into retirement.

Fortunately, there’s a better way:

Trade your stock market risk for a guaranteed lifetime income.

And it’s very easy:

Just buy a lifetime income annuity.

And you never have to worry about what the stock market does again.

Instead, you’ll get a set, predictable amount every month, every quarter, or every year (you pick!), for the rest of your life.

Guaranteed.

What’s a lifetime income annuity? 

A lifetime income annuity is a proven and popular no-fee insurance product. It’s very simple:

You pay a lump sum, called premium to a life insurance company.

In return, the insurance company agrees to pay you a promised amount every month. For as long as you live.

No matter what.

If stocks crash, they still pay.

If interest rates skyrocket, they still pay.

You get that stream of income regardless of what happens.

No mutual fund, stock, or any other investment can make that guarantee. Only an annuity can do that.

It’s like having a safe and secure pension from one of the most financially sound companies in the world.

Essentially, with a lifetime income annuity, you transfer all the risk of stock market, bond market, and interest rate volatility that you cannot bear to the insurance company, and the capital markets, which can.

The exact amount you can receive depends on just a few factors:

• Your age
• Your sex
• Your spouse’s age and sex (if you want the income to last both of your lifetimes!)
• The insurance company issuing the annuity.
• Whether you want inflation protection built-in to your lifetime income annuity. Some annuities will build in an increasing benefit to help you keep up with inflation. 

How to Set up a Lifetime Annuity for Yourself

Ready to say goodbye to sleepless nights and worrying about your retirement income security? Here’s how to buy a lifetime income annuity:

First, decide how much of your retirement income you want to guarantee. For example, you may want to lock in a guaranteed income of $7,000 per month, and keep the rest at risk, hoping for a decent stock market return.

Or you may want to take half of your current retirement savings and convert it to a guaranteed lifetime income of as much as you can get, without taking any risk.

Then contact your Personal Benefits Manager.

They will take your information, and then get back to you with bids from America’s best, most solid and stable insurance companies. Based on the amount of premium you can contribute, the competing insurance companies will tell you exactly how much they are willing to pay every month, guaranteed.

You just pick the best bid.

You pay no fees, and no commissions. The insurance carrier compensates the agent. 

What is the Downsides of a Lifetime Annuity?

The disadvantage? Your heirs may not inherit that money. Some annuities have a death benefit. But with most lifetime income annuities, premium not paid out to you goes to pay other annuity holders that outlive you.

Not ready to retire yet, but want to lock in a guaranteed income in some future year? We can do that, too! In this case, instead of a lifetime income annuity, ask about a deferred income annuity, or DIA.

Again, there are no fees or commissions you have to worry about. You’re just trading a lump sum for a guaranteed income starting at some later date, instead of immediately.

Yes, there are some types of annuities that have high fees. But these aren’t among them. With lifetime income annuities (LIAs) and deferred income annuities (DIAs), you pay no fees, no expense ratios, and no broker commissions whatsoever.

You just get the amount of income, as promised, for the rest of your life. 

Financial Peace of Mind

So don’t worry about what’s happening in the stock market. Concentrate on spoiling your grandchildren, mastering your putting game, and enjoying life more!

Ready to learn more? Contact your Personal Benefits Manager! They can help you collect bids from America’s strongest insurance carriers.

P.S., Want a way to leave an amazing legacy to a young grandchild or great grandchild? Here’s how: Buy a lifetime income annuity, with a joint and survivor payout. That’s a fancy way of saying “second to die” annuity.  Name the child as your co-annuitant.

You’ll get a small payout for the rest of your life.

Then, after you’re gone, the insurance company will send a small check to the child. Every year, or every month. For the rest of his or her life.

It usually isn’t a large amount of money. But it’s a way of giving your grandchildren a little blessing every year for the rest of their lives that says “I. Love. You.” 

Your Personal Benefits Manager can help you make this happen. 

Have a very happy and blessed New Year! 

Here’s to your health and wealth,

Wiley P. Long, III
President – MediGap Advisors