Broker Check

You can DIY guaranteed income with these 3 tips

Retirement Read Time: 3 min

You’ve probably heard of DIY or do-it-yourself. From home improvement to knitting to repairing your own electronics, the DIY mentality can be applied to almost any endeavor. But did you know it’s possible to DIY guaranteed income for your retirement? With an income annuity, you can.

Traditional pensions are rare

Traditional pensions are employer-sponsored retirement vehicles that pay you a fixed income after you retire. Pensions offer added stability in retirement — a guaranteed income — but can be expensive and potentially risky for employers. As a result, they have largely gone the way of the dodo in the private sector, where now only about 7 percent of nonunion workers participate in  a pension plan.1

401(k)s are riskier for employees

Pensions have been replaced by defined contribution plans, like 401(k)s, where employees set aside a portion of their income for investment. Often, employers match or supplement their employees’ contributions, but the risk of the investment losing value falls on the employee, not the employer.

Fortunately, with a little bit of ingenuity and a financial vehicle called an annuity, it’s still possible to have guaranteed income in retirement. Here’s how to DIY:

Step 1: Learn the basics

To get the best DIY results, it’s a great idea to learn at least a little about whatever you’re working on. When building your own guaranteed income, that means understanding annuities. An annuity is a type of asset that is designed to pay you an income in retirement. You can purchase an annuity with a single lump sum or, like a 401(k), you can pay into the annuity over a period of time (called an accumulation period). Once the payment is complete, the annuity commences, and you’ll receive annuity payments — income.

Step 2: Plan your retirement         

You can’t pick the right annuity until you have a strategy for your retirement. What are your goals and priorities? Do you want to retire early, exactly at 65, or later? Will you work part-time in retirement, or maybe start your own business? Are you planning to travel the world or stay home and focus on your (other) DIY projects?

Annuities can be personalized in several ways, and which one is right for you will depend on what kind of retirement you want. For example, annuities can be set up to pay income for the rest of your life or for a set period of time (say, 20 years). They can even be set up to pay their benefit to your spouse if you pass away first.

Step 3: Ask a pro

Another important lesson from DIY — sometimes you need a helping hand to get the job done correctly. For DIY income strategy, this means reaching out to a financial professional to learn about the full range of annuity options available to you and the costs associated. They can also help you put a strategy in place for your retirement, so you’ll be able to personalize your DIY income in just the right way. Contact your financial professional today to get started.

SOURCES:

1 https://www.cnn.com/2023/09/07/success/pensions-retirement-savings-explained/index.html

DISCLAIMERS:

Annuity guarantees are backed solely by the strength and claims paying ability of the issuing insurance company.

Brought to you by The Guardian Network © 2024. The Guardian Life Insurance Company of America®, New York, NY

 2024-175246 Exp. 5/26 *Pre-approved content*

Have a Question?

Sam Duffey
Sam Duffey
Ashford Brokerage, CA License #0J09024, AR License #15480533 Director of Brokerage Sales
http://www.incomeisimportant.com (205) 843-9434

Introducing Income Protection Made Simple

In every stage of life, the sudden halt of income or cash flow can have a profound impact on our lifestyle and hinder progress towards future financial goals. As a seasoned professional in the insurance industry, I understand the importance of safeguarding what many believe is ones most important financial resource, and that's where I come in.

I collaborate closely with financial professionals, serving as a valuable partner to enhance their existing carrier relationships and offer comprehensive protection against unforeseen circumstances like untimely death, injury, or illness.

Through my unique KNOW - SHOW - FLOW service, financial professionals experience a seamless process that empowers them to:

KNOW: Stay informed about the most prevalent and relevant cases we encounter, enabling them to make well-informed decisions for their clients.

SHOW: Master the art of strategizing and implementing protection plans with ease, even providing the option for joint meetings if necessary, to foster client understanding and confidence.

FLOW: Leverage our innovative agency marketing website and cutting-edge tools that enable them to scale their business to new heights.

Our offerings encompass a range of insurance products tailored to individual needs:

1) Disability Income: Provides crucial protection for earning professionals against the unexpected impacts of injury or illness on their income.

2) Term Life: Ensures the continuity of future income for loved ones in the event of the untimely passing of a breadwinner.

3) Whole Life: Establishes a lasting legacy benefit and serves as a reliable retirement distribution strategy.

When working with our brokerage team, success takes on a clear and tangible form. We strive to empower financial professionals to engage with clients confidently about income protection, streamlining the new business process, and unveiling new markets as well as sales ideas that lead to substantial business growth.

Our ultimate objective is to equip you with the tools and knowledge necessary to protect your clients' financial well-being comprehensively. As a result, you'll find new ease in processing business, discover expanded market opportunities, and experience unmatched satisfaction as you witness your business scale to unprecedented heights.

Join us in making Income Protection Made Simple a reality for your clients and your professional success. Let's work together to secure their dreams and create a more secure financial future for all.