Don’t Leave Your Kids or Grandkids Any Money!

August 29, 2017

Too many retirees don’t enjoy their retirement because they don’t know how to tap into their assets in a way that ensures they won’t run out of money, so there is a constant worry. They forgo travel, entertainment, dining out, and other adventures in the hopes that such frugality will prolong their savings.
Such a mentality confirms the fact that the #1 risk to a successful retirement plan is longevity as people are living longer than ever, and that the real key to happiness in retirement is receiving income that can last a lifetime, and not just a pile of money. By converting assets into an income stream that covers basic living expenses and by following proper strategies, you can worry less about running out of money, and retirement is much more enjoyable and low stress. Just ask anyone who has a sizeable pension!

So what do you do if you don’t have a pension? A lifetime income stream can be created through various annuity options. Annuities come in many flavors – indexed, variable, fixed, deferred income, immediate, etc., so working with a professional to determine the right one for you is key.

Another issue that people worry about and leads to stress is how much money to leave to the kids or grandkids. The solution – don’t leave them any! Leave them life insurance instead. When people worry about leaving enough of a financial legacy, the frugality creeps back in and they make decisions about retirement spending that may not be in their own best interest. By setting up a permanent life insurance policy – either on one individual or a second-to-die policy – one can determine exactly how much they will leave to their heirs, TAX FREE! They will also know the exact cost of the life insurance and can include that amount in the living expenses that are covered by their guaranteed income! Retirement won!