Probably the biggest fallacy in retirement planning (and one being constantly perpetuated by innumerable retirement pundits and online “calculator” apps) is that you need X number of dollars in order to happily and safely retire. That’s not what it’s about at all.
Imagine you’ve decided you want to move to Sweden. You have a Swedish friend named Hans, so you ask him, “How much do I need to live there?” Hans is not going to tell you, “Well, you need $1.6 million saved up in a diversified portfolio of blah, blah, blah.” No. Hans will probably tell you that you need an income of about X number of dollars (or kronor in Sweden) per month to pay rent, utilities, buy groceries, and still have money left over for fun.
Wealth in retirement (or when you’re getting close to retirement) isn’t about how much money you’ve got—if all that is tied up in variable investments, it can go away in the blink of an eye. It’s about how much income you’ve got. And whether you have enough income guaranteed for the rest of your life, no matter what happens, to cover all of your basic necessities with some money left to play and dine out.
Too often, prospective clients will say, “Okay, I’ve added up all my bills, food costs, insurance, car payment, etc. So that’s how much I need.” But they leave out what people work their whole lives for, which is the fun stuff in retirement. That’s what really makes someone wealthy. So that needs to be added in there too.
I’ve known lots of folks who most would consider wealthy. But you know what? They’re scared. They’re worried about what’s going to happen to their money. They lie awake at night wondering if they will have enough for the rest of their lives. This could be someone with $100,000 or someone with $3.7 million. It doesn’t matter; it’s still the same mindset. Changing that mindset is a huge deal.
Don’t let the fear of running out of money before you run out of life keep you awake at night. Don’t let the stress and anxiety that comes with this fear negatively affect your health.
Be proactive and prepared for whatever may come with a Guaranteed Lifetime Income annuity to cover your (and your spouse’s, if applicable) expenses, no matter how long you live. Imagine the freedom and peace of knowing your bills will be covered.
Get with your retirement planning expert today to develop your own plan for an income you can’t outlive. You’ll be glad you did.
