Show Notes
How much should I be planning for retirement?
The Income Replacement Ratio
$45,000 in expenses (2 people 65 or older)
$4,000 in expenses
$2,500 in Social Security
Gap $1,500 has to come from other sources
Real estate, stock/bonds/mutual/funds, annuities, etc.
America’s Income Challenge
Only 30% of people have a plan.
From $4,000 a month, $1,000 a month needed for utilities, food, and property insurance could be covered by annuities.
Most Americans will spend similarly in retirement as they did while working.
The Three-Legged Stool of Fulfilling-Stage Savings
Government benefits
Social Security
Corporate benefits
Pensions
401(k)
Private benefits
Savings
Real Estate
Annuities
History of Annuity Products
People view annuities as an investment instead of looking at them as an insurance product.
Fees were high in the past. Today’s annuities are different, from low to no fees.
Disclosure - People were taken advantage of in the past. The new legislature has changed that.
JD Powers rating of annuities.
Today’s annuities are useful for guaranteed income.
Who should buy annuities?
Typical annuity buyer is age 50 and older.
Have $100,000 or more in assets.
Purchase an $80,000 to $120,000 annuity to generate income in retirement.
Although older people buy annuities, everyone should consider if these are good products to cover some of their retirement needs.
The two options for buying annuities
Single premium - lump-sum purchase ($80,000).
Flexible premiums - monthly contribution ($500 down and $200 per month)
Resources
Harry N. Stout Website - www.financialverse.com
Today’s Annuity Products: A Tool to Create Protected Lifetime Income
Financial Verse Books by Harry N. Stout
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com
Information
- Show
- PublishedFebruary 2, 2021 at 12:30 PM UTC
- Length36 min
- RatingClean